Get FREE Quote

Billback

Billback is a way for credit card processing companies to simplify the billing of interchange fees to merchant accounts. This is done by billing all cards at a single standardized rate up front, and then going back and rebilling the same merchant account for the difference between the rates once all transactions for the month have been processed, hence the name billback. This creates two separate line items on the merchant’s billing statement.

For example, if Visa has set the interchange rate for swiping a card under normal conditions at 1.50%, the billback system will assume that all processed cards fall into this category. The credit card processing company will bill the merchant for all cards at 1.50% first, so if the company charges $2000, they will see an initial processing fee of $30.

Then, the credit card processor will go back through those charges and determine which ones fall into different categories of interchange fees. If half of those charges ($1000) are classified as keyed cards instead of swiped cards, their interchange rate would normally be 1.80%. Since the merchant account has already been billed for 1.50%, the difference between the two will only be 0.30%. As a result, the merchant will receive a billback statement for the difference between the two rates. $1000 x 0.30% is $3. The billback for the month will be $3.

One of the biggest factors in the billback system is the time delay between the initial charges and the billback charges. This is because the first bill is for the current month, but by the time the billback charges arrive, the merchant is already into the next month. As a result, the charges appear in such a way that the merchant account is being billed for the current month at the standardized rate, and the previous month for the difference between the standard and the actual rates. This can be somewhat confusing when reading the credit card processors bill.

Overall, using a billback system can make it easier for merchants to track their credit card processing expenses. By breaking down the different interchange rates, merchants can see how often their charges are being swiped versus keyed, while still staying current on the majority of their processing fees in the current billing period.

GET FREE QUOTE TODAY AND START SAVING


Testimonials

It took me a while to decide who I wanted to settle with to handle all of my credit card transactions because every company wants to make it sound like they're offering you the best rates. CreditCardProcessing.com was able compare and beat all of the other offers I received. They were also able to provide me the fairest price on my EMV-compliant terminal. My sales representative and the support team were there to assist every step of the way. Ultimately, I'm looking forward to a long term relationship with this company.

Roland Tran from the Hong Kong Kitchen

It is a pleasure dealing with these folks. Their pricing is fair, their statements are understandable and their employees are knowledgeable and friendly.

John MacMillian from the Great Lakes Baking Company

The service was very professional, my sales person (Steven B.) was very well versed in the product and most helpful in getting our company set up to accept credit cards via my cell phone. Their rates are some of the lowest on the market and their service is unparalleled. I will recommend them to anyone requiring a credit card processing service.

Michael Harper from Deluxe Auto Body

Jonathan C. is wonderful to work with. He is very helpful, accommodating and resolves any issue quickly. It is hard these days to find someone who gives great customer service, but I can say, Jonathan is the best! I would not hesitate to recommend him to any business owner and to assist you in helping to grow your business.

Linda Garner from Regali Da Forno

I called indecisive about getting a device, but speaking to your Sales Consultant completely settled me. He was very professional, knowledgeable and patiently walked me through the process. He always responded to my voicemails and answered all my questions. After I received my merchandise, he called following up to ensure that I had received it. Customer service I would say is 5 stars. Stellar! Thanks Credit Card Processing, I will definitely recommend you.

Sarah Morgan from Vision International Ministries
Call Us Today!

© 2017 CreditCardProcessing.com. All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Concord, CA

*Further terms and conditions may apply. Promotion contingent upon CreditCardProcessing.com's receipt of written competing offer(s).

**Certain restrictions may apply.

Promotional offers brought to you by CreditCardProcessing.com.

EMV™ is a registered trademark of EMVco, LLC. Apple, the Apple logo, iPhone and Apple Pay are trademarks of Apple, Inc., registered in the U.S. and other countries. Android™ is a trademark of Google, Inc.

Call for details.