Choosing between flat rate and tiered pricing feels like a trick question - both have hidden catches. Let's demystify these pricing models so you can make an informed decision and stop overpaying.
With flat rate, you pay the same percentage regardless of card type (e.g., 2.9% + $0.30 for all transactions). Simple to understand, but you overpay on debit cards and basic credit cards.
Tiered pricing has 'qualified,' 'mid-qualified,' and 'non-qualified' rates. Sounds reasonable, but processors control which transactions fall into each tier, often routing cards to expensive tiers.
Request a processing statement analysis. Calculate your effective rate for each pricing model. For tiered pricing, check what percentage of transactions are actually at the 'qualified' rate.
Both flat rate and tiered pricing hide true costs. Interchange plus pricing shows actual card network costs plus a transparent markup. It's usually the cheapest option for established businesses.
| Feature | Clover | CapClover |
|---|---|---|
| Customer Support | ✗ Long hold times, unresponsive | ✓ Your assigned rep's direct line |
| Business Funding | ✗ Limited or no options | ✓ Up to $500,000 |
| Approval Time | ✗ Weeks or denied | ✓ Same-day decisions |
| Hidden Fees | ✗ Frequently reported | ✓ Transparent pricing |
| Contract Terms | ✗ Early termination fees | ✓ Flexible terms |
Get business funding up to $500,000 with your own dedicated rep - this is their direct line, not a call center.