Business Flat Fee Processing Terminals

What Is Flat Fee Payment Processing And How It Will Save You Money?

No matter the type of business you own, you have something in common with every other business owner out there. You’re in the business of making money! And while there are many different ways to grow your bottom line, it often starts with saving money.

Naturally, it’s important to find ways to spend less than you earn. To accomplish that, it’s a must that you consider the costs of running your business. At Unity Payments, we often have this discussion with clients who wish to take advantage of our various payment solutions such as the Poynt Smart Terminal or our Virtual Terminals. In those conversations, we typically bring up the concept of flat fee payment processing.

What is flat fee payment processing?

When most people hear the term “flat fee”, they usually associate it with the term “flat rate”. But, in this case, it’s important to differentiate the different types of flat rates that exist. It’s not as simple as you may assume. A flat rate can be determined by either a percentage charge or a set dollar amount. Keep in mind that a flat rate percentage and a flat fee are not the same thing.

What is a flat rate percentage?

A flat rate percentage is a fixed portion or cut that you pay to your payment processor for every transaction you make. In many cases, merchants find that paying flat rate percentages are more costly. Let’s just say, for example, you pay a 5% flat rate percentage on transactions. Paying your payment processor five dollars on a $100 transaction may not seem like a lot. But paying fifty bucks on a $1000 charge may start feeling like your pockets are being dug into a bit too far.

Generally speaking, flat rate percentages are considered decent options for businesses that process very low volumes. They also work out fairly well for companies that rarely process credit card transactions. However, for businesses that process large transactions and regularly accept credit card payments, a flat rate percentage can feel like a punishment. In other words, the more you sell, the more they take!

What is a flat fee?

A flat fee, as you’ve likely guessed, is a fixed dollar amount that you pay to your payment processor for their services. In many cases, this fee is a monthly charge. It doesn’t fluctuate no matter how large your transactions or how frequently you process credit card sales. For this reason, a flat fee is also commonly referred to as a monthly maintenance fee or membership.

A flat fee is often considered the ideal choice as it covers all aspects of your processing in one convenient cost. Merchants know exactly what they are paying, each and every month, and avoid any additional fees or unexpected charges. A flat fee gives your business assurances that it can operate smoothly and without unwanted surprise bills. Simply put, a flat fee is not only more convenient, it’s a guaranteed money saver!

For more information about how you can save money by making Unity Payments your payment processor, please don’t hesitate to call us at 1-800-661-3761 or email us at