InterPayments

Resources

Merchants and Partners across various industries benefit from InterPayments

Merchants and Partners across various industries benefit from InterPayments

Case Studies

B2C Collectibles Retailer

Industry: Retail

Size: $100mm+ GMV

Sales Channels: E-Commerce and Virtual Terminal

Integration Point: Integrated into merchant’s 3rd party cloud commerce platform.

Features: Business rules allowed surcharging flexibility depending upon transaction amount.

Processing Rate Model: Interchange Plus

B2B Commercial Kitchen Distributor

Industry: Distribution

Size: $100 million+ GMV

Sales Channels: E-Commerce and Virtual Terminal

Integration Point: Integrated into merchant’s 3rd party Enterprise Resource Platform.

Processing Rate Model: Interchange Plus

B2B/B2C Nationwide Call Center

Industry: Services All Industries

Size: $100 million+ GMV

Sales Channels: Virtual Terminal

Integration Point: Integrated into platform’s Card Not Present payment platform

Processing Rate Model: Interchange Plus and Fixed Rate

B2C Offer Based Product Retailer

Industry: Retail

Size: $50 million+ GMV

Sales Channels: E-Commerce

Integration Point: Integrated into merchant’s proprietary e-commerce platform

Features: Added additional product lines after successful surcharging trial period

Processing Rate Model: Interchange Plus and Fixed Rate

B2B CRM Software Partner

Industry: High Risk Retailers

Size: $25 million+ GMV

Sales Channels: E-Commerce

Integration Point: Integrated into platform’s payment solutions

Features: Resold as unique, differentiated feature to merchants to improve merchant acquisition and retention

Processing Rate Model: Interchange Plus and Fixed Rate

B2B Payment Processor

Industry: Restaurants, Entertainment, NonProfits, Other

Size: $100 million+ GMV

Sales Channels: E-Commerce and Virtual Terminal

Integration Point: Integrated into platform’s proprietary tech stack

Features: Resold as unique, differentiated feature to merchants to improve merchant acquisition and retention

Processing Rate Model: Interchange Plus and Fixed Rate

FAQ

Can I surcharge New Customers, but not Existing Customers?

Yes. You can choose to choose to surcharge one group of customers and not another.

Recurring billing: you may choose to surcharge new recurring customers and not surcharge existing recurring customers.

If you want to begin surcharging existing customers with recurring billing models, then there are customer notification requirements which InterPayments can provide for you.

You can choose to surcharge a specific group of customers simply by calling the API for that specific group.

Required Notices – there are 2 types:

Card Brand
and
Customer Notice

Card Brand Notices: You cannot surcharge until you have notified the card brands of your intent to surcharge.

Customer Notice: Anytime you have recurring billing practices, you must notify the customer if you intend to change the amount you’re charging, you need to tell them 30 days and then again 60 days in advance. The customer must have time to cancel or change their recurring order.

Is the surcharge a separate transaction?

No. The customer will receive and pay one total fee in one purchase transaction.

Can I surcharge International Transactions?

You can surcharge international cards IF the customer’s shipping address is in the United States.

What’s the difference between a Convenience Fee and Surcharge?

There are vague rules surrounding Convenience Fees. It is an amount added to the purchase price; the consumer pays the fee to use a more “convenient” way to pay. It can be applied to both debit and credit cards, but there must be one channel of sales where a Convenience Fee is not applied.

A Surcharge is only applied to credit cards, but it can be applied to all channels of sales (physical in person, card not present, e-commerce, etc.)

For example:
Convenience Fee – movie theaters. You can purchase tickets in person or online. A convenience fee is charged for online purchases, but not on in person purchases. A Convenience Fee is applied to all online debit and credit cards.

Surcharge – an omnichannel retailer. The retailer can pass along the credit card processing fees across all of their sales channels: brick-and-mortar, telephone, and e-commerce. The surcharge is only applied to credit cards, not debit cards.

Is InterPayments PCI Compliant?

Are the card’s first 6 digits (BIN) PCI Compliant?

The PCI Security Standards Council states that either the first 6 digits (BIN) or the last 4 digits are the maximum digits that may be displayed. See below: Section 3.3 PCI DSS Requirements.

InterPayments only needs the first 6 digits, the zip code, and the transaction amount in order for our platform to compliantly operate. We have no interest in taking any more data than those 3 simple pieces of information.

Furthermore, we only send the first 6 digits of the card number (BIN number) via the API to our platform.

As such, in order for InterPayments’ service to compliantly operate, PCI Compliance is not required.

Which processing fees does InterPayments recover?

100% of any PER TRANSACTION FEES up to the maximum of 4.0% total:

  • Interchange fees (paid to card issuing bank)
  • Network or Assessment fees (paid to credit card brands like Visa and Mastercard)
  • Markup (paid to merchant bank)
  • Gateway fees (paid to the payment gateway provider)
  • Authentication fees (if not included in the base processing per transaction fees)

Glossary of Terms

Independent Software Vendor

a digital platform which aggregates merchants and provides them a technology service to assist them in selling their products/services

Examples:

  • Customer relationship management (CRM) software
  • Payment facilitator platform (provides billing, inventory management, websites for selling goods/services, etc.)
  • Tablet-based Point of Sale systems: like Square
  • Payment gateways
  • Payment Processors

API

Application Program Interface: technology code that allows two software programs to speak with one another
InterPayments technology is an API that the Customer calls in order to retrieve data to show on the Customer’s payment system

CNP

Card Not Present: remote payment using a debit or credit card

GMV

Gross Merchandise Volume: total sales dollar value for merchandise sold

MSA

Merchant Services Agreement
InterPayments signs an MSA with each paying Customer; it outlines the terms and conditions of the relationship between InterPayments and the Customer

PCI Compliance

Payment Card Industry compliance: set of standards set forth by the payment industry council to secure customer data in a uniform manner across the industry

BIN

Bank Identification Number: first 6 digits of the card number used to associate the card with its bank

Interchange Fee

Transaction fees representing 70-90% of a merchant’s processing fees it pays to its bank must pay whenever a customer uses a credit/debit card to make a purchase from their store. The fees are paid to the card-issuing bank to cover handling costs, fraud and bad debt costs and the risk involved in approving the payment.
Interchange Fees are determined by card type (debit vs. credit, reward card, etc.), business size, industry, and transaction type (CNP vs. POS)

Interchange Fee Models

Flat Fee: cheapest option for small businesses. Charges a flat fee for every transaction.

Tiered: charges different fixed rates dependent on the volume.

Interchange Plus: cheapest option for medium-sized or larger businesses. Breaks down every transaction into the actual Interchange Fee + a nominal fixed fee per transaction.

Subscription: Pay the interchange fee rate, but instead of a nominal fixed fee, merchants pay a monthly subscription fee which covers that fee.

POS

Point of Sale: in person payment using a debit or credit card

Payment Gateway
And
Merchant Account

A payment gateway is a software application that plugs into your ecommerce platform to authorize online payments. Payment gateways are required because it is prohibited to send transaction information directly from a website to a payment processor, per PCI compliance guidelines. They provide merchants with transaction management, reporting, and billing services. A merchant account is a financial institution or bank account used by a merchant specifically for the purpose of collecting proceeds from a consumer bank account or credit card payment transactions.

Virtual Terminal

The virtual terminal is used for merchant-facing transactions. In other words, situations where the customer provides their information directly to the merchant over the phone or in person, rather than keying it in themselves. Because of this, a virtual terminal usually features an interface that is more basic than what you would get from a payment gateway.