The "Flat-Rate" Trap

Why Simple Processing Might Be Your Most Expensive Business Choice

When you’re first starting out, "2.6% + 10 cents" sounds like a great deal. It’s easy to remember, easy to calculate, and seems predictable. This "flat-rate" model is why so many new businesses in North Carolina gravitate toward national providers like Square or Toast.

But as your business grows - especially in high-volume industries like retail, restaurants, and medical - that "simple" flat rate often turns into an unnecessary "success tax."

The Problem with One-Size-Fits-All

Flat-rate processors charge you the same amount regardless of the actual cost to process a card. Here’s the catch: not all cards cost the same.

• Debit Cards: These are significantly cheaper to process than credit cards.
• Basic Credit Cards: Standard cards have much lower fees than "Elite" or "Business Rewards" cards.

In a flat-rate model, the provider keeps the difference. If a transaction only costs them 1.5% to process but they charge you 2.6%, they pocket that extra 1.1% as pure profit. For an established NC business, that adds up to thousands of dollars every year that should be staying in your bank account.

How North Carolina Businesses are Fighting Back

By moving away from flat rates and toward more transparent structures, local business owners are reclaiming their margins. Here are the two most effective strategies we’re seeing right now:

1. Dual Pricing (The Margin Protector)

This is 100% legal and compliant in North Carolina. It allows you to display a "Cash Price" and a "Card Price" at your register. This transparently passes the processing cost to the customer choosing the convenience of credit, ensuring your business keeps 100% of the sale price.

2. Compliant Surcharging

Similar to dual pricing, surcharging adds a small fee (capped at 3% in the U.S.) to credit card transactions. It’s a popular choice for B2B and professional services (like trade and medical) where invoices are larger.

The Power of Local Support

National providers are great until something goes wrong. When your terminal stops working on a busy Saturday in Raleigh or Charlotte, you don’t want to be on hold with a call center in another country.

At Merchant Match, we are based right here in North Carolina. We provide on-site setup and local support because we know that for a physical business, every minute of downtime is a lost sale.

Is it time for a "Math Check"?

We don’t believe in taking your business just for the sake of it. Our process is simple: we look at your current statements and show you the math.

• If we can save you money (like the $15k–$20k/year we save our medical clients), we’ll show you how.
• If your current flat-rate plan is actually the best deal for your volume, we’ll tell you to stay right where you are.

Main goal: Help NC business owners win.

Schedule a free, no-pressure rate review with our NC team.

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