Credit Card Processing Bundled Rate

The term bundled rate is used to describe a merchant account that does not have a transaction fee, but instead only a discount rate.

Typically a merchant is charged two different fees to process a credit card transaction. The first charge is a percentage of the gross transaction that is called a discount rate, and the second charge is a flat dollar amount called a transaction fee. The transaction fee typically ranges from $0.05 - $0.50, depending on the type of account, and the merchant service provider.

A bundled rate consists of a single percentage that is charged to process credit card transactions. For example, a typical fee schedule may be 2.39% plus $0.35 per transaction, where a bundled rate schedule is a single 2.50% charge to process transactions.

A merchant account with a bundled rate is most beneficial to merchants that have a low average ticket. Merchants that have a medium to high average ticket will benefit most from a merchant account that has a lower discount rate and a flat transaction fee.