Straight answers to the questions we hear most — from what interchange actually is, to how chargebacks work, to how our referral program pays out.
Interchange is the fee paid to the bank that issued your customer’s card, set by Visa, Mastercard, and other card networks — not by Merchantic or any processor. It varies by card type, transaction method, and industry, and it’s the same rate regardless of who processes the transaction. When you see a breakdown of your processing costs, interchange is the pass-through portion; markup is what your processor adds on top of it.
Flat-rate pricing (common with app-based processors) charges one blended percentage regardless of card type, which is simple but usually more expensive for a business with a mix of card types. Interchange-plus passes the real interchange cost through directly and adds a fixed, transparent markup on top — so you can actually see what you’re paying for. Our Statement Analyzer shows this breakdown using your own numbers.
Your effective rate is your total monthly processing fees divided by your total monthly card volume. It’s the single most useful number for comparing processors, since it accounts for every fee — interchange, markup, and any flat monthly charges — in one percentage.
A payment gateway handles the technical transmission of transaction data. A processor moves funds between banks. An ISO (Independent Sales Organization, like Merchantic) is registered with the card networks to sell and support processing services, often bringing underwriting, support, and pricing flexibility a gateway alone doesn’t provide. Many businesses only ever deal with one company, but it helps to know which role you’re actually evaluating.
PCI DSS (Payment Card Industry Data Security Standard) is the set of security requirements every business that handles card data must meet. For most merchants, that means annually completing a Self-Assessment Questionnaire (SAQ) and following specific data-handling rules. Merchantic reduces this burden through tokenization — card data is tokenized at the point of entry, so raw card numbers never touch your systems, which shrinks your PCI scope significantly. See our Security page for the full picture.
Tokenization replaces sensitive card data with a random, meaningless “token” immediately upon entry. That token can be safely stored and reused for recurring billing or refunds, but it’s useless to anyone who doesn’t have it — even if your systems were compromised, there’s no actual card data to steal. Full implementation detail is in our API documentation.
Underwriting is how a processor assesses the risk of your specific business before approving an account — industry, processing history, and volume all factor in. Merchantic underwrites every account individually rather than applying a blanket template, which is what allows us to approve specialty and higher-risk businesses that flat-rate processors often decline outright.
A refund is initiated by the merchant, returning funds voluntarily. A chargeback is initiated by the cardholder’s bank, forcibly reversing a transaction — usually due to a dispute, suspected fraud, or a customer claiming they didn’t authorize the charge. Chargebacks also carry a fee and count against your chargeback ratio, which card networks monitor; too many can put your account at risk regardless of the underlying reason.
Most preventable chargebacks come down to a few fixable habits: use clear, recognizable billing descriptors so customers know what a charge is for; get authorization and delivery confirmation on higher-ticket or shipped items; and respond quickly to customer complaints before they escalate to a dispute. We work with merchants on process changes specific to their chargeback patterns rather than generic advice.
You’ll be notified with the reason code and a window to respond with evidence (representment) if you believe the charge was legitimate — things like proof of delivery, signed authorization, or prior communication with the customer. Our team helps put together that response rather than leaving you to interpret bank paperwork alone.
It varies by business type and complexity, but most standard accounts are underwritten and approved within a few business days of receiving complete documentation. Specialty and higher-risk accounts can take longer since they involve more detailed review — we’ll give you a realistic timeline once we see your specifics.
A rate review is a straightforward look at what you’re currently paying, using an actual statement rather than guesswork, with no cost or obligation to switch. You can start one yourself with our Savings Calculator or Statement Analyzer, or request a full review directly.
Often, yes — but not always, and we’ll tell you honestly either way. If your current rate is already efficient (common for very high-volume, low-ticket businesses), we’ll say so rather than force a comparison that doesn’t hold up. Every account is underwritten individually, so the real answer depends on your actual numbers, not a generic promise.
Individual agents, ISOs, accounting and bookkeeping firms, and industry associations are all welcome to apply — there’s no exclusivity requirement or cost to join. Details and the application are on our Referral Partner Program page.
Residuals are calculated and paid monthly, for as long as a referred account stays active — not a one-time bounty. Referral agents earn a sliding scale of 20–50% of net revenue depending on active portfolio size; ISO splits are negotiated individually based on portfolio and risk profile.