Limo Payment Processing: Stop Overpaying for Card Fees

1. Flat rate (Stripe, Square, PayPal) — 2.6%–2.9% + $0.30 across all card types. Simple, expensive at volume.
2. Interchange-plus — actual interchange (set by Visa/MC) + a fixed markup (e.g. 0.30% + $0.10). Cheaper at volume; requires a real merchant account.
3. Tiered — qualified, mid-qualified, non-qualified rates. Mostly outdated; almost always overpriced. Avoid.

Flat rate is fine under ~$300k/year in card volume. Above that, switch to interchange-plus.

Five common overpayments:

1. Default flat rate above $500k/year volume. Switching to interchange-plus typically saves 0.4–0.7%.
2. No corporate card surcharge program. Corporate Visa/MC interchange runs 2.5–3.0% — high. A legal cash-discount or surcharge program offsets this.
3. Manual key-in for in-person bookings. Manually entered cards run 0.5–1.0% higher than tap/dip. Use a hardware reader for in-person.
4. Authorize-only with multi-day capture. Holds longer than 7 days reauthorize at higher rates. Capture promptly.
5. No address verification (AVS) on phone bookings. AVS-failed transactions run 0.3–0.5% higher.

Any one of these is worth fixing.

In most US states, you can legally: - Add a 2–3% surcharge on credit card payments (must be disclosed) - Or, advertise a "cash discount" off the regular price for cash/check/ACH

Both shift the processing cost to the customer. Corporate accounts often accept ACH instead of card to avoid the surcharge — saving you the entire 2.5–3.0% interchange. Worth $25,000–$80,000/year for a mid-size operator.

State-by-state rules vary; consult counsel before launching.

The single biggest fee saver: move corporate billing to ACH instead of card. ACH costs $0.25–$1.00 per transaction regardless of size. On a $4,000 corporate invoice, that's the difference between $1.00 (ACH) and $116 (card at 2.9%).

Most corporate clients prefer ACH anyway — easier on their AP team, no card-on-file management. Just ask. Most will say yes.

Compare processors apples-to-apples: - Monthly fee - Per-transaction fee - PCI compliance fee (some charge $99–$300/year) - Statement fee - Chargeback fee ($15–$50) - Early termination fee - Equipment lease vs. purchase

A 0.1% rate advantage doesn't matter if the processor charges $300/year in PCI fees you didn't have before.

Effective rate above 2.5% on a healthy book of business is grounds for a renegotiation conversation. Either your current processor matches the market or you switch.

The leverage in the conversation: - 12-month volume statement - Quote from a competitor - Willingness to sign a 12-month or 24-month commitment in exchange for the lower rate

Most processors will give you 0.10–0.30% discount to keep the business when pressed.

Save further on processing complexity by running everything through your dispatch software's built-in payments. Kymark integrates with Stripe (with negotiated rates available) and supports cards, ACH, and Apple/Google Pay — so you have one source of truth for revenue, fees, and reconciliation. Walk through the billing features or start your free 14-day trial and lock in a GNet users discount — 10% off any plan, for life — limited time offer valid until the deadline shown in the offer countdown to see the full picture.

Revenue grows when quoting is faster, invoicing is cleaner, and no trip slips through the cracks. That's exactly what Kymark is built to do. Explore the features, check pricing, or start your free 14-day trial and lock in a GNet users discount — 10% off any plan, for life — limited time offer valid until the deadline shown in the offer countdown — quantify the lift on your current trip volume right inside the app.

Related reading: Increase Revenue Per Booking · Reduce Costs Without Sacrificing Quality · Upselling Strategies.