We get asked a lot about how we are able to offer our merchants such low processing rates. There are 6 reasons for this, which you can find below:
Reduced merchant liability --> Reduced processing cost
Payment processors who cater to online businesses (ex.Stripe, Shopify, WooCommerce) charge more for the higher risk transactions verses in-person, in-store, chip & pin transactions which have a much lower fraud risk, therefore reduced processing cost
No bundled Hardware / Software costs --> Reduced processing cost
Some companies bundle in the hardware/software costs (Square, Clover), therefore pass on this in the form of processing cost to the merchant. For Yocale Pay, No bundled hardware / software charges equals a reduction in processing costs
Removing intermediary processors --> Reduced processing costs
Some processors are sub-processors or re-sellers of major processors, therefore they get an inflated, handed down rate therefore can't compete with the bank wholesale rates. Because we work directly with the processors, we are able to offer a reduction in processing costs to merchants
Leveraged merchant network --> Reduced Rates
If a single merchant were to go to a bank or processor and ask for the best rate, you would be unlikely to get the best rate since you are only processing the volume of 1 business. Yocale Pay is able to leverage our network of merchants to bundle the volume of multiple businesses to reduce the processing rates much lower than a regular posted rate a single business on their own will be offered.
Tiered Settlement --> Reduced Interchange Cost
Some transaction settlements are able to be bundled together and sent to the bank at a lower interchange and processing rate which we can then pass on as savings to our merchants.
Customer Satisfaction Over Company Profits = Reduced Rates
At the end of the day we care about two things:
Having happy processing merchants
Offering our processing to as many merchants as we can
By taking care of our merchants, we know we can accomplish the above 2 goals. If we operate like most processors in the space and up-charge where most do, we'll be hurting our merchants and ourselves. Therefore we will always only offer our merchants the best rates possible.
Hope this helps to shine some light as to how Yocale Pay is able to offer our merchants lower payment processing costs for all business types!