A basis point is a financial unit of measurement. One basis point is equal to 1/100th of 1%, and is used to denote a change in a financial instrument. One basis point could be written as 1 basis point, or 0.01%, or .0001. Therefore, 100 basis points equals 1.0%. The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security. So what does a basis point have to do with merchant processing? Continue Reading »

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