We’re thrilled to share the highlights from our recent webinar, unveiling an innovative new credit card surcharging solution that’s set to transform how our partners approach payment processing. Stax’s new surcharge pricing model delivers the flexibility, simplicity, and compliance ISVs have been asking for—all while protecting your bottom line.
Watch the Webinar on Demand
Credit Card Surcharging: A Smart Solution for Today’s Market
In today’s economic climate, credit card surcharging has become an essential tool for merchants looking to manage costs without sacrificing customer relationships. Here’s why it works:
✓ Flexibility for Price-Sensitive Merchants: Help your merchants stay competitive by offering customers the choice to cover processing fees or use alternative payment methods.
✓ Multiple Payment Options: Cardholders can easily avoid credit card surcharges by choosing debit, ACH, or other payment methods.
✓ Compliance Made Simple: We handle the heavy lifting of navigating complex state laws and card brand regulations so you don’t have to.
When certain card brands introduced the 3% surcharge cap in 2023, many ISVs and vertical SaaS solutions felt the squeeze:
- Shrinking profit margins
- Difficulty addressing biannual card brand pricing increases
While an initial fixed platform fee solution helped, many embedded payments partners need something more flexible to match unique pricing strategies.
Stax Connect’s New Credit Card Surcharge Pricing Model
The new Stax surcharge pricing model allows merchants to pay a percentage of their credit card surcharge transaction volume as a fee, typically lower than traditional processing costs. It includes the following features:
- A flexible and variable rate tailored to individual partners’ pricing strategies.
- Revenue preservation for ISVs, ensuring margins remain strong while offering merchants a compliant cost-saving solution.
- Simplified integration for partners using Stax Connect APIs, minimizing development effort.
How It Powers Success:
- Flexible rates (0.5%, 1%, 1.25%—whatever works for your business model)
- Seamless integration through Stax Connect APIs with minimal development work
- Net Revenue parity between surcharge and non-surcharge transactions
Real Results from Stax Connect Partners
One of our pilot partners in professional services saw incredible results:
- Previous model: 0.67% total net revenue with a fixed $50 platform fee
- New model: 1.31% total net revenue with a 1% merchant fee
- The outcome: A massive 96% revenue increase!
This demonstrates the model’s scalability and its ability to address diverse pricing scenarios while maintaining value for merchants and partners alike. Success isn’t just about the technology, though; it’s about empowering you with everything you need:
- Crystal-clear reporting for ISVs and merchants alike
- Ready-to-use sales materials including email templates,one-pagers, and comprehensive FAQs
- Expert guidance from our team every step of the way
Ready to Transform Your Credit Card Surcharging Strategy?
Stax’s new credit card surcharge pricing model represents a game-changing approach to surcharging. By introducing flexibility, preserving revenue, and simplifying compliance, the model ensures a win-win solution for merchants, ISV partners, and Stax.
If you’re a current or future Stax partner, now’s the perfect time to explore this innovative program and redefine the way your merchants handle payment processing fees.
Ready to learn more? Reach out to the Stax team today.
