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TERMS
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WHAT IS THE DURBIN AMENDMENT?
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BUNDLED VS.
INTERCHANGE PLUS
PRICING
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PROCESSING COST
FUNDAMENTALS
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WHITEPAPER
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OTHER FREQUENTLY
ASKED QUESTIONS

PRICING PROS & CONS
Bundled pricing is taking a beating in the post-Durbin market. Bundled pricing is not for everyone, yet, some businesses prefer bundled pricing. It is possible for businesses to save on processing expenses, even on a bundled pricing option. TSYS Merchant Solutions passed the interchange savings along to the majority of our bundled customers.

Like all decisions, which pricing method you utilize depends on your preferences. Review the advantages and disadvantages of each method to determine which pricing method is right for your business.

Payment processing pricing components include four major factors:

Interchange – 100% retained by issuing bank
Assessments – 100% retained by card brand
Authorization – paid to the authorization vendor
Processing – paid to the payment processor

Learn more about the payment process.

BUNDLED PRICING

Advantages	Disadvantages
Understand exactly the rates you pay for transactions Simplifies accounting/balancing Easily estimate monthly, quarterly annual expenses	Several interchange programs, more than 400 possible interchange rates are “bundled” into four – five rates Difficult to see distribution of processing expenses

INTERCHANGE PLUS PRICING

Advantages	Disadvantages
Pay the exact cost per transaction – no assumptions built into interchange expense Easily identify distribution of processing expenses Additional control over transaction qualification	Difficult to estimate expense with over 400 possible rates for each transaction Balancing is more complicated – linking fee to a transaction

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TSYS Merchant Solutions is a registered agent of First National Bank of Omaha.