PAO Group Inc (PAOG)

[vantillian]

You said: "We have to remember that it's not the credit card companies that earn a percentage per every transaction."

In a word, WRONG. http://www.mastercard.com/us/merchant/pdf/MasterCard_Interchange_Rates_and_Criteria.pdf

Credit card companies do indeed take a percentage of every swipe and some cards demand higher percentages (Discover and Amex are notorious).

These fees are called "Interchange fees."

These fees are set by the credit card networks,[1] and are the largest component of the various fees that most merchants pay for the privilege of accepting credit cards, representing 70% to 90% of these fees by some estimates, although larger merchants typically pay less as a percentage. Interchange fees have a complex pricing structure, which is based on the card brand, regions or jurisdictions, the type of credit or debit card, the type and size of the accepting merchant, and the type of transaction (e.g. online, in-store, phone order, whether the card is present for the transaction, etc.). Further complicating the rate schedules, interchange fees are typically a flat fee plus a percentage of the total purchase price (including taxes). In the United States, the fee averages approximately 2% of transaction value.

https://en.wikipedia.org/wiki/Interchange_fee

Here is Master Card's latest interchange rates schedule: http://www.mastercard.com/us/merchant/pdf/MasterCard_Interchange_Rates_and_Criteria.pdf

You might not care about the brand of card since your processing company has averaged it out to 2.5% per swipe for your particular business...but it is an oversimplification to say that the processing company doesn't care about the brand of the card.

The exact interchange fee charged to the acquiring bank (and the merchant) is determined by several factors: whether the card is present at the transaction, what type of card is used (a rewards card? a card used by the government for purchasing?) and what type of merchant accepts the card.

Yes, the type of business you are in can affect the interchange rates. This is because the issuing bank wants to be compensated for the risk of the dreaded chargeback, which happens when a customer disputes a charge successfully. When a customer complains about the product or services you have provided, chances are good that the money you were paid by the acquiring bank, plus additional fees, will be taken out of your account. You can appeal this, but it will take a while and you will probably lose.

More here: http://boss.blogs.nytimes.com/2013/03/25/what-you-need-to-know-about-credit-card-processing/?_r=0

My understanding is that thru the relationship with FirstView Financial NWAV will realize a percentage of both the interchange fee and administrative fees with participating retailers.

FirstView Financial negotiates these fees directly with the acquiring and issuing banks. The money is there and your idea about "above and beyond" is incorrect. The whole concept is that it just all happens automatically and that there is incentive across the board for it to happen at all.