What is the typical qualification requirement for merchants under the Flat-Fee Option?

The typical qualification requirement for merchants under the Flat-Fee Option is based on their American Express charge volume, specifically that it should be below a certain threshold, such as $5,000. This requirement is designed to target smaller businesses that may not have a high volume of transactions with American Express. By keeping the charge volume under this limit, merchants can benefit from predictable fees associated with processing, making it simpler to manage their payment processing costs without risk of incurring variable rates often tied to higher volumes.

The Flat-Fee Option is streamlined for easier budgeting and accounting for those smaller merchants while still allowing them to accept American Express cards. This makes it a suitable choice for businesses that have lower sales or fewer customers using American Express, thus focusing on those who might typically struggle with fluctuating fees based on transaction volume.

Other choices do not align accurately with the standard qualifications for Flat-Fee options. For example, merchant eligibility is not defined by annual revenue thresholds, a limit on the number of transactions per month, or requirements to offer loyalty programs, which can impose additional burdens on smaller merchants rather than simplifying their fee structures.