💸 Why Flat-Rate Payment Processing Is Costing You More Than You Think

If your business is using a flat-rate processor like Square, Stripe, or PayPal, you're likely overpaying for every transaction—whether you realize it or not. These platforms market simplicity, but that simplicity often comes at a serious cost.

Let’s break down why flat-rate pricing isn't always as friendly as it looks—and how wholesale pricing could save your business 20%–40% on processing fees.

🧾 What Is Flat-Rate Pricing?

Flat-rate pricing means you pay a fixed fee per transaction—usually something like 2.9% + 30¢ for online payments or 2.6% + 10¢ in-person. It’s predictable and easy to understand.

But here’s the problem: you’re being charged the same rate no matter what the card type is, even though the actual cost of processing a debit card is much lower than a rewards credit card.

So while you're being charged the same amount, the processor keeps the difference as profit.

💡 What’s the Alternative? Wholesale (Interchange-Plus) Pricing.

With wholesale pricing, you pay the true cost of the transaction—called the interchange rate (set by Visa, Mastercard, etc.)—plus a small markup from your processor.

Here’s what that might look like:

• Interchange rate: 1.65% (for that specific card)

• Markup: 0.20%

• Total cost to you: 1.85%, not 2.9%

Now imagine saving over 1% on every transaction. If you're doing $20,000 a month in sales, that’s $200+ in savings—every month.

📉 The Real Cost of "Simple" Pricing

Here’s what flat-rate platforms don’t want you to know:

• You pay extra on every low-risk, low-fee transaction

• High-volume = high overpayment

• Chargeback support is minimal

• There's no room to negotiate or optimize

And if you're in a non-traditional or high-risk industry (CBD, coaching, supplements), you may be one account review away from being shut down.

🛠️ How to Switch (and Actually Save)

At Clay Pay, we work with small businesses, SaaS platforms, e-commerce brands, and high-risk merchants to offer wholesale pricing, custom technology, and real customer service.

We tailor every solution to the business. That means no cookie-cutter fees, no locked accounts, and you keep more of what you earn.

👇 The Bottom Line

If you’re processing more than $10,000/month, flat-rate pricing is likely draining your profits. The good news? Switching to wholesale pricing doesn’t have to be complicated—and it could put hundreds (or thousands) back in your pocket each month.

Ready to compare your current rates to true wholesale pricing?
Let’s run a free savings analysis—no pressure, no pitch.