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Get MatchedMerchant’s Guide To Membership-Based Credit Card Processing
Credit card fees don’t have to be a mystery. Here’s how membership pricing stacks up -- and whether it can save your business money.
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WRITTEN & RESEARCHED BY
Editor & Senior Staff Writer
UPDATED
Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
Key Takeaways
- Membership-based pricing replaces percentage markups with a flat monthly fee plus interchange and per-transaction costs.
- This model can save mid-sized and high-volume businesses money but is often too expensive for very small or seasonal merchants.
- Always compare membership pricing against flat-rate, interchange-plus, and tiered models to see which best fits your processing volume.
If you’re tired of feeling ripped off by credit card fees, membership pricing might be the simpler, more affordable option you’ve been looking for.
In this guide, we’ll break down how membership pricing works, how it affects your costs, how it stacks up against other pricing models, and whether it’s the right fit for your business.
Table of Contents
- What Is Membership Fee Payment Processing?
- How Do Subscription Merchant Services Work?
- How Much Does Subscription-Based Pricing Cost?
- How Does Membership-Based Pricing Compare To Other Pricing Plans?
- What To Look For In Subscription-Based Merchant Accounts
- Is Subscription-Based Pricing The Right Option For Your Business?
What Is Membership Fee Payment Processing?
Membership pricing (also called subscription or flat-rate membership) is a credit card processing model where you pay a monthly fee, a flat per-transaction charge, and the standard interchange fees.
The difference between this pricing model and others is that it cuts out the extra percentage markup most processors tack on to every sale.
How Do Subscription Merchant Services Work?
With membership pricing, you’ll typically pay interchange + $0.20 per transaction, plus a flat monthly subscription fee. That subscription replaces the percentage markup you’d normally see on each transaction.
This setup makes membership pricing close to wholesale processing — you just pay interchange, a small per-transaction fee, and your subscription.
How Much Does Subscription-Based Pricing Cost?
Membership pricing comes with a monthly fee, usually between $49 and $199. That may sound steep, but it typically replaces the long list of smaller fees you’d pay with a traditional merchant account.
Instead of separate charges for things like gateway access, statements, or PCI compliance, everything’s bundled into one subscription.
Membership Pricing Fees
Providers that offer membership pricing are usually upfront about what’s included in your subscription, and most won’t pile on surprise account fees. The catch is that they rarely break down how much of your monthly payment covers account services versus actual processing costs.
It’s also important to know that membership pricing doesn’t wipe out incidental fees. Things like chargebacks still cost extra, and other one-off charges may be passed through at cost.
Membership Pricing Plans
Most providers give you a choice of different membership levels. Higher tiers mean a larger monthly fee, but you’ll usually pay less per transaction and sometimes get access to additional features.
Keep in mind that you don’t always get to pick your tier just because it looks like the best deal. Membership levels are tied to your monthly processing volume. If your sales grow beyond the limit of your current tier, your provider may automatically move you into the next one.
How Does Membership-Based Pricing Compare To Other Pricing Plans?
Membership pricing is just one of four main ways processors charge for credit card transactions. The others are flat-rate, interchange-plus, and tiered pricing. If membership pricing doesn’t feel like the right fit, it’s worth looking at how it stacks up against the alternatives.
| Pricing Model | How Fees Are Charged | Pros | Cons | Best For |
|---|---|---|---|---|
| Flat-Rate | Fixed % per transaction | Predictable rates | Costly for high-volume or large-ticket sales | Small or seasonal businesses |
| Interchange-Plus | Interchange + % markup + per-transaction fee | Transparent, lower cost at high volume | Can be complicated to calculate total costs | Businesses with steady volume |
| Tiered | Fees vary by card type/transaction | Can be simple for processors | Often more expensive, unpredictable | N/A (usually not cost-effective) |
| Membership | Subscription + interchange + flat per-transaction | Predictable, wholesale-like pricing | Monthly fee, still pay incidental charges | High-volume, large-ticket businesses |
Here’s a further breakdown:
What To Look For In Subscription-Based Merchant Accounts
More processors are rolling out membership-based pricing, which is great — but it also makes it harder to figure out which one actually gives you the best value.
Merchant service account fees and features can vary a lot from vendor to vendor, so here’s what you’ll want to keep in mind:
| Factor | What To Look For | What To Avoid |
|---|---|---|
| Monthly Subscription Fee | Fair price with all core features included | Low fee but missing key tools, forcing add-on costs |
| Volume Discounts | Higher fees at higher volume but lower per-transaction rates that save you money | Tiered pricing that raises monthly fees without meaningful rate savings |
| Bundled Hardware & Software | Includes gateway, virtual terminal, or card reader in subscription | Requires separate purchase of hardware/software |
| Pass-Through Fees | Clear “one monthly fee” model, minimal extra charges | Multiple recurring or hidden fees that undermine savings, monthly minimums |
| Contract Terms | Month-to-month agreement, no ETF | Long-term contracts or early termination fees |
Is Subscription-Based Pricing The Right Option For Your Business?
Subscription pricing isn’t for everyone. The higher monthly fee can make it a poor choice for very small or seasonal businesses, and high-risk merchants usually won’t qualify.
That said, it can be a great fit for mid-sized or larger businesses with steady, higher-volume processing. If you run bigger-ticket sales, you’ll save even more since you’re not paying markup on each transaction. For the right business, the savings can really add up.
And remember: there’s no single “good price” for merchant services. The right plan is simply the one that matches your volume and average ticket size while keeping extra fees to a minimum.
If you’re still shopping around, remember that the best credit card processors for small businesses offer multiple pricing models, features, and contract terms. Compare providers now — it could save you money in the long run.
Erica Seppala
Editor & Senior Staff Writer at Merchant Maverick
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
View Erica Seppala's professional experience on LinkedIn.
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Credit Card Processing With Superior Support
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With Helcim, you get everything you need to accept credit card payments online or in-person with a free account, plus high-quality support from real humans. Start For Free.
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