---
title: What Is A Basis Point? Justin Holm - CCSalesPro
description: Let’s try to visually grasp the concept of a basis point.   To Read the Full Article, Please Login below or Register Free   I’ll explain it several ways. Imagine 1 penny is 1 basis point. 100 pennies = 100 basis points. 100 pennies = 1 full point, or 1%. 1% = 100 basis points. So […]
---

[Blog ](https://www.ccsalespro.com/blog)

# [What Is A Basis Point? Justin Holm - CCSalesPro](https://www.ccsalespro.com/blog/basis-point)

 Written by [James Shepherd](https://www.ccsalespro.com/blog/author/james-shepherd) | Oct 11, 2013 10:24:23 PM

<https://www.ccsalespro.com/hubfs/Imported_Blog_Media/dreamstime_l_18371483.jpg>

Figuring basis points

Let’s try to visually grasp the concept of a basis point.

 

To Read the Full Article, Please Login below or [Register Free](https://www.ccsalespro.com/wp-login.php?action=register)

 

I’ll explain it several ways.  
 Imagine 1 penny is 1 basis point.  
 100 pennies = 100 basis points.  
 100 pennies = 1 full point, or 1%.  
 1% = 100 basis points.  
 So a basis point is 1/100th of 1%.  
 A basis point is 1 penny in a $1 roll of pennies.  
 Let’s process a $100 debit sale at 40 basis points over Interchange.  
 [This calculation does not consider the item fee, which is separate.]  
 Here is how the stack of pennies [basis points] are divided:  
 Interchange:  
 • The Visa MasterCard Association share 5 basis points (bips) with their  
 Member Banks.  
 • 11 bips (pennies) for V MC Assessments.  
 Then the Processor gets 40¢, of which 16¢ goes to the Agent (40% split).  
 The Merchant pays 56 basis points (so far) to process $100.

Team Leader

Justin Holm

***Read previous post:  [Sending Christmas Cards to Merchants](https://www.ccsalespro.com/sending-christmas-cards-merchants/)***

> [Sending Christmas Cards to Merchants](https://www.ccsalespro.com/sending-christmas-cards-merchants/)

***Read next post:  [Stop Trying to Sell People – Merchant Services Sales Tip](https://www.ccsalespro.com/stop-trying-sell-people-merchant-services-sales-tip/)***

> [Stop Trying to Sell People – Merchant Services Sales Tip](https://www.ccsalespro.com/stop-trying-sell-people-merchant-services-sales-tip/)

[View full post](https://www.ccsalespro.com/blog/basis-point)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "James Shepherd"
  },
  "dateModified" : "2023-05-02T22:57:31.453Z",
  "datePublished" : "2013-10-11T22:24:23Z",
  "headline" : "What Is A Basis Point? Justin Holm",
  "image" : {
    "@type" : "ImageObject",
    "height" : 60,
    "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png",
    "width" : 60
  },
  "mainEntityOfPage" : "https://www.ccsalespro.com/blog/basis-point",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60,
      "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png",
      "width" : 60
    },
    "name" : "Blog"
  }
}
```