With iQ Merchant's 0% markup, what do you actually pay each month?
Summary
Interchange and network costs at cost, plus a flat monthly membership fee that iQ Merchant does not price on its public pages. The company says it passes Visa and Mastercard interchange straight through and makes its money from a membership fee based on your monthly card sales, so the membership fee is the number a quote has to supply.
How iQ Merchant describes its pricing
The How it works page says iQ Merchant does not profit from marking up interchange and instead shares wholesale rates, charging "a flat membership fee based on your monthly credit card sales." The About page calls this the Merchant Membership Model and a 0% markup program. The home page adds "No hidden fees, no cancellation fees, no long-term contracts" and a request-a-quote button under the line "One pricing plan does not fit all."
Why a flat fee lands differently by volume
Each $10 of membership fee is 0.20% of $5,000 in monthly card sales, 0.05% of $20,000, and 0.01% of $100,000. The sign-up form asks for monthly processing volume in five bands, from less than $5,000 to more than $100,000, and for a recent merchant statement. Nothing on the site ties those bands to a fee amount.
Claims that change from page to page
- Funding: the home page lists Same Day Funding, the How it works page lists Next Day Funding.
- Savings: the home page says merchants save 30 to 50% on average, the How it works page says 40% a month on average.
- Contracts: the home page says no long-term contracts, the About page says no contracts.
The How it works perks also include no early termination fees, free equipment and no statement fees. No processor or sponsor bank is named on any page, and the site gives no street address. The About page says the team has been in payments for almost two decades.
Products
Mobile payments on iOS and Android, contactless, ecommerce, invoicing, future and recurring payments, a virtual terminal, reporting that integrates with QuickBooks, and Cloud POS versions for pizza shops, dining, bars and delivery. The virtual terminal page says Level II and Level III data can qualify business and corporate cards for better rates. The support pages cover the PAX A920 terminal, the Swift B250 reader, and the SwipeSimple app and virtual terminal.
Sources
- iqmerchant.com
- iqmerchant.com/how-it-works
- iqmerchant.com/about
- iqmerchant.com/solutions
- iqmerchant.com/solutions/virtual-terminal
- iqmerchant.com/start
- iqmerchant.com/iq-support
Related on this site
- Why interchange-plus pricing cannot be totaled
- Does a flat rate, interchange-plus, tiered, or subscription plan cost a merchant the least?
- How to read the effective rate on this site
- Effective rate calculator
Written by Kaz (pen name). Figures are copied from providers' published pricing pages on the dates shown. We have not used these products. Corrections: contact form.