Credit Card Industry Slang: "Pass-Through Pricing"

We previously explained what "Bucket" or "Tiered" pricing was - when the 300+ categories of interchange are clumped into 3-5 tiers in order to simplify pricing for the merchant while also making more profit for the merchant service provider.

Today we will explain what "Pass-Through Pricing" or "True-Pricing" is - this is the most efficient and cost-effective plan for a merchant to be on, it is also very simple. With pass-through and true pricing the merchant is simply charged the exact same that the merchant service provider is charged for each of the 300+ interchange categories with a small percentage fee added on in order to make it profitable. Traditionally only large companies and corporations were given pass-through pricing while small businesses were only given 3 or 5 tier pricing structures. With NXGEN all companies and business owners, no matter how big or small, are put on pass-through pricing to maximize their profit and help save them money.

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Credit Card Industry Slang: "Bucket Pricing"

"Bucket Pricing" aka "Tiered Pricing" is a pricing structure commonly used by Merchant Service Providers to simplify interchange* rates while also maximizing profit. In this strategy the more than 300 interchange categories are usually clumped into 3 or 5 tiers. All companies make these distinctions differently however so even if 2 MSPs have the same amount of tiers with the same rates for each tier they may have clumped the 300+ interchange categories into different tiers therefore altering the amount you will end up getting charged at the end of the month.

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