Credit card payments make renting a storage unit more convenient for tenants, but they also can come with a cost to you, the operator. If you’ve ever felt unsure about how your processing rates are calculated, you’re not alone. In this article, we’ll break down how payment processing works, what hidden fees to watch for, and how to choose the right provider.

Two Types of Credit Card Processing Rates

When it comes to payment processing, you’ll typically encounter two types of rate structures:

1. Flat Rate (Blended) – A single percentage (e.g., 2.9% + $0.25) that appears simple.
2. Pass-Through (Interchange Plus) – You pay the base interchange fee set by the card networks plus a markup from your processor (e.g., 2.25% + interchange).

What Are Interchange Fees?

Interchange fees are set by card networks like Visa, Mastercard, Discover, and American Express. These fees are non-negotiable and depend on the type of card used:

• Debit cards tend to have lower fees.
• Rewards and business cards typically cost more.
• AMEX usually carries the highest interchange rates, which is why some businesses charge extra or decline it altogether.

Why Pass-Through Pricing Might Cost More

Pass-through pricing sounds transparent, but the actual costs can add up:

• Your processor might quote 2.25%, but your effective rate could be 3.25% or higher, depending on the card types.
• Be wary of pricing that sounds too low—it may exclude interchange fees or other costs.

Who Is the Payment Processor?

A payment processor is the intermediary between your facility and the card networks. They handle:

• Transaction approvals
• Compliance checks
• Fund deposits

One example is our preferred provider, Priority Payments, who offers transparent pricing and strong integration capabilities with 6Storage.

At 6Storage, we go a step further by working directly with storage operators to review their current credit card processing statements. We help identify potential savings and provide options that align with your business goals, ensuring you’re not overpaying on fees and are set up with the right provider for your needs.

Should You Add a Convenience Fee?

Many operators pass part of the cost on to tenants through a convenience fee for credit card transactions. This can be applied easily within most self-storage platforms, including 6Storage.

Before implementing, be sure to:

• Check your state laws and card brand rules
• Disclose fees to tenants

Other Hidden Fees to Watch For

Beyond the basic processing rate, be mindful of these potential charges:

• PCI Compliance Fees
• Monthly Platform Fees
• Chargeback Fees

The Bottom Line

Credit card processing is a necessary part of doing business, but it shouldn’t be a mystery. By understanding fee structures and partnering with a reliable processor like Priority Payments, you can simplify your payment systems and keep costs under control.

Need help reviewing your current setup? Contact the 6Storage team. We’ll help you streamline operations, save money, and support tenant convenience every step of the way.