A credit card allows the cardholder to pay for goods and services from merchants and retailers with a promise of later payment whereby a revolving account is created by the issuer of the card.
But the credit card processing industry usually applies certain confusing and deceptive pricing tactics so that merchants never find out how much Visa/Mastercard and the processors are making off of them.
Credit card processing consists of Base Costs and Markup Cost and the rate that is used to pay for a transaction is a combination of these two components. No processor can give a lower rate on the base cost as such, in order to get the lowest rates; one has to shop for the lowest overall markup.
Usually big retailers create an unfair advantage for larger companies by negotiating with the banks to get the fees directly paid to them.
But Payment Depot allows this same advantage for smaller businesses, by charging a subscription rate starting from $20 a month, whereby they pass the rate from Visa and Mastercard directly to the smaller businesses allowing them to make more profit.
The infographic below explains how Payment Depot is ‘leveling the paying field’.
