Payments

Merchant processing: what actually drives the cost.

Truidian helps businesses evaluate and connect with third-party merchant processors for card acceptance — and helps businesses figure out whether an existing processor still fits. Truidian is not a payment processor.

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How it works

Understanding merchant processing.

Merchant processing

How does merchant processing work?

Merchant processing is the service that lets a business accept card payments, moving funds from the cardholder’s bank through the card networks to the business’s bank account.

A merchant relationship typically involves a processor, a sponsoring acquiring bank, and often a gateway or point-of-sale system that captures the transaction. Each transaction passes through several parties before funds settle, and fees are collected along the way.

Pricing models differ in how they pass those costs along: interchange-plus charges the underlying card-network rate plus a fixed markup, making true cost visible; tiered pricing groups transactions into buckets that can obscure the real rate; flat-rate pricing charges one rate regardless of card type; and subscription pricing charges a flat monthly fee plus a smaller per-transaction markup. The best fit depends on average ticket size, card mix and monthly volume.

Commonly explored when

A new business is setting up card acceptance for the first time
An effective rate has crept up over time without an obvious explanation
Changing point-of-sale, billing or industry software prompts a processor review

Pricing models

How processors price card acceptance.

Interchange-plus
Passes through the card network’s actual rate plus a fixed markup — generally the most transparent model for comparing providers.
Tiered pricing
Groups transactions into qualified, mid-qualified and non-qualified tiers, which can make the effective rate harder to see upfront.
Flat-rate pricing
One rate for most transactions regardless of card type — simple to understand, but not always the lowest cost at higher volumes.
Effective rate
Total processing fees divided by total processed volume — the single number that cuts through any pricing model to show true cost.

FAQ

Common questions about merchant processing.

Is Truidian a payment processor?

No. Truidian is a business solutions company. Truidian helps businesses evaluate and connect with third-party merchant processors. Processing services are provided by participating providers under their own agreements.

What is the difference between interchange-plus and flat-rate pricing?

Interchange-plus passes through the card network’s actual rate plus a fixed markup, making true cost transparent. Flat-rate pricing charges one blended rate regardless of card type — simpler, but not always cheaper at higher volumes.

How do I calculate my effective processing rate?

Divide total processing fees over a period by total card volume processed in that period. This single number cuts through tiered or bundled pricing to show the true cost of accepting cards.

Can Truidian help me compare my current processor against others?

Yes. Truidian can help review your current statement and setup, then compare it against participating providers. Savings are not guaranteed and depend on your volume, card mix and industry.

Already processing? Start with a review.

Tell us how you accept payments today, including your current statement if you have it. We'll help you compare your setup with participating providers.

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Truidian is not a payment processor or acquiring bank. Processing services are provided by participating third-party providers under their own agreements. Savings and approval are not guaranteed.