Successful vertically-focused software-as-a-service platforms deserve simplicity and transparency from a payments partner, especially with how it relates to the revenue model. Hundreds of Interchange categories factor into the cost of a transaction. On top of that, many providers add nuisance fees—set up, monthly, per MID, and more—that impact the platform’s profits. How well you negotiate shouldn’t dictate your success. Understand precisely how much you’ll pay so you can implement a merchant-level pricing structure aligned with your growth strategies.
Here are two things to ask when it comes to pricing:
Is there a published pricing structure? Upon what is it based?
Don’t get lured into the “simplicity” of flat rate pricing, which is a sneaky way for the provider to keep more margin. Look for published, volume-based Interchange Plus pricing, including the details of precisely what makes up the “Plus” part of the rate. A fair partner will let you keep 100% of the benefit above that.
How long am I locked into a pricing model? Must I renegotiate?
Pricing of 0.35% and $0.30 over Interchange may be reasonable for a platform with $15 million in annual processing volume. But it’s not so great if your volume grows to more than $300 million after a couple of years. A partner like Rainforest understands that your success fuels our success and communicates your growth path. Look for a tiered pricing schedule that allows you to estimate your revenue stream quickly and adjusts as you scale, allowing you to implement effective pricing strategies for your business and your customers.
Platforms deserve a transparent, friendly model that lets them embed payments successfully into every aspect of their business to monetize more of the payment stream without the underlying liability. Everything about Rainforest has been built intentionally with platformss in mind.
Your payment revenue fuels our success. We bring the people, processes, and technology to make that happen. Grow with us. Reach out today.