Why Swipe Again Charges a Flat Fee Instead of a Percentage of Recovered Payments

The article argues that percentage-based pricing for payment-recovery tools can grow into a large cost for merchants, since the vendor's fee rises with the size of the merchant's losses. It uses an example of a store losing $40,000 in failed payments a year, recovering a third of that, and facing a fee that climbs annually with the business. By contrast, a flat fee caps the vendor's revenue regardless of how much is recovered, aligning its incentives differently. The author cites Swipe Again's $179 flat-fee model as an example and explains its reasoning on the company's pricing page. The piece contends that percentage models de-risk the vendor's sale but shift risk onto merchants over time.