Clearent Launches Discount Plus Pricing for Credit Card Processing

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Clearent announces new Discount Plus merchant pricing option to help its customers adapt to the latest card association fees.

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Our goal is to go above and beyond the mandatory requirements to help our sales partners win in the marketplace.

Today Clearent announced its new Discount Plus merchant pricing option to help its customers adapt to the latest card association fees. This new capability adds to Clearent's extremely flexible yet simple merchant pricing options, and helps protect the profitability of the company’s ISO, agent and financial institution partners.

Pricing in the credit card processing industry has become very complicated as a result of the increasing number of interchange rates and other fees from the card brands such as Visa, MasterCard and Discover. One particular challenge is the addition of fees outside of traditional interchange, such as the new Visa Transaction Integrity Fee and Fixed Acquirer Network Fee.

These new fees make it challenging to use discount (or tiered) pricing for merchants because these fees must be accounted for in addition to interchange. One approach is to use interchange plus (or pass through) pricing instead. However, many merchants, ISOs, and agents prefer discount pricing because the fixed rates are easier for them to understand.

Clearent's new Discount Plus pricing option is a hybrid of the two major methods, offering the best of both worlds to its credit card processing customers. With this new option, card association assessments and fees – excluding regular interchange – are passed through to the merchant at cost, in addition to the discount rate. This allows merchants to keep the simplicity of discount pricing while protecting sales agents from the profit-reducing effects of new association fees.

"Many of our ISOs and agents are not sure how to use discount pricing these days due to the dizzying array of new fees and frequent changes," said Jeff Zimmerman, Vice President of Product Management. "They prefer to use discount pricing for new accounts, but feel that they are forced to use interchange plus pricing in all cases to protect their residual streams from new fees. Our Discount Plus option gives them another tool to help them succeed in a highly competitive market."

Clearent offers a wide variety of pricing options, including Discount, Discount Plus, Interchange Plus and Interchange Plus Advanced. Clearent sales partners can choose the best pricing option for each opportunity without the burden of complex billing tables and codes.

In the past year, many new regulatory mandates and association changes have presented a considerable challenge to merchant acquirers and payment processors. “A key advantage of our proprietary back-end processing platform is the ability to adapt to these frequent changes,” commented Dan Geraty, CEO. “Our goal is to go above and beyond the mandatory requirements to help our sales partners win in the marketplace. Our flexible system and talented development team enable us to do just that.”

About Clearent
Clearent is a credit card processing company that was built to be different. We combine leading edge technology with a passion for service to help our customers maximize the value of their merchant services program. Clearent provides sales agents, financial institutions and merchants with benefits not available from other providers, such as next day funding with a late cut-off time and unrivaled graphical, web-based reporting. The company has grown in excess of 100 percent for the past four years and now processes over $2.5 billion in annual card volume. To learn more, visit http://www.clearent.com or call 866.205.4721.

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Shannon Kohler
Clearent
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