The 'Pay What You Want' Model

The payment processing industry has a reputation for unfair and dishonest pricing. Big banks have taken advantage of business owners, resulting in widespread fear and distrust. Polaris Payments is different

Our solution? Let us earn your trust by providing excellent service. The 'Pay What You Want' model is just what it sounds like: we do our best to serve you, and you decide how much you want to pay for that. 

Ground Rules

Rule 1: You decide how much you’ll pay for your processing, at or above the floor rates. We cannot price below Interchange cost. Interchange is the base price to process a card set by the major card brands, shown in the chart below.

Rule 2: Even convicted criminals have some rights. One of them is the explanation of the verdict. So you we ask that you explain why you are paying what you are paying. Don't worry, we're not going to try and "sell" you on paying high rates. The choice is yours! But we would like to get a feel for your expectations.

Floor Rates (the lowest we can go)

If we set all our clients on these prices, we'd quickly run out of power.

There are two different pricing models in the world of credit card processing. If you’re already accepting credit cards, you’ll be on one of these two pricing models:

Interchange Plus
The following rates are above Interchange (Interchange is the base price to process a card transaction). For example, if you process $10,000 and your pricing is .10%, the processor makes $10 above cost. Polaris Payments partners with other back-end processors and receives a portion of total revenue. Anything below the following rates would constitute a net loss for both Polaris and the processor.

Tiered
The following rates are based on the type of credit card a customer pays with. Qualified is a standard issued credit card. Mid Qualified is a rewards card or frequent flyer miles card. Non Qualified is a keyed in card, foreign, or a corporate rewards card.
 

*The latest pricing model that has become more popular is called "flat rate" pricing (think Paypal & Square). Would you like a flat rate? We probably can't go any lower than 2.00%, but contact us so we can ensure it makes sense for your business due to the many variables (type of business, number of transactions, volume, etc.).

Components of Cost:

There are many components going on behind the scenes to ensure your transactions are processed smoothly and securely. Below are a few examples of what goes into processing payments:

  • providing unlimited & free 24/7 tech support (both the processor and Polaris)
  • monitoring all transactions for fraud
  • setting up the account with the payment networks
  • taking on the risk (processors take on liability for fraud, data breaches, chargebacks, etc.)
  • underwriting completing the initial review and approval of the account
  • basic business costs (taxes, bookkeeping, marketing, etc.)
  • setting up the equipment, virtual terminal, or software integration
  • keeping employees trained with the changes in the industry and technology trends
  • opportunity cost (as a business, our time could be spent on higher revenue generating efforts)

Suggested Prices

If you’re already accepting credit cards, you’ll be on one of these two pricing models:

Interchange Plus
This is the base price to process cards, plus a markup.

Tiered
The following rates are based on the type of credit card a customer pays with. Qualified is a standard issued credit card. Mid Qualified is a rewards card or frequent flyer miles card. Non Qualified is a keyed in card, foreign, or a corporate rewards card.
 

*The latest pricing model that has become more popular is called "flat rate" pricing (think Paypal & Square). Would you like a flat rate? We'd probably recommend 2.50%-2.75%, but contact us so we can ensure it makes sense for your business due to the many variables (type of business, number of transactions, volume, etc.).

"I'm ready to move forward; what does the process look like?"

1. Once you give us the green light, all we need are a couple signatures from you, some basic business information (Federal Tax ID #, etc.) and a voided check so we know where to put your money. 

2. Your account should get approved in a day or so.

3. Once approved, we will take care of set up, so that there is no technology hassle for you. We will either

  • reprogram your existing equipment
  • ship you new equipment that's plug-and-play, already linked to your bank account
  • if you are using a virtual terminal or software, you will receive a welcome email containing the login and password

4. That's it! You can sit back and relax, or get back to doing what you do best. We believe that when you win, we win. And hopefully, by providing value to you, you'd be willing to refer us to your friends that you know who also accept credit cards. 

Feel free to reach out to our head honcho directly with questions. Don't worry, he's friendly.
Jason Keil
[email protected]
253-655-7238

 

A note on discretion. 

We may be the first payment processor in the world where you pay what you think it's worth. Thus, we're still figuring out the kinks in the system. We'd love for you to share with others about your experience with Polaris Payments, but please don't share the PWYW pricing model.