Who Benefits from Interchange Plus Pricing?
High-Volume Businesses
E-commerce Platforms
Enterprises with Complex Transactions
What is Interchange Plus Pricing?
Interchange Plus pricing is a transparent and fair way to manage payment processing fees. It separates the costs of accepting card payments into two components:
01
Interchange Fees
The fees set by the card networks (e.g. Visa, MasterCard) for processing payments. These fees vary based on:
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Card class
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Card type
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Merchant Location
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Channel
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Merchant Category
02
Plus (Markup)
A fixed percentage or flat fee added by the payment processor. This is our simple, predictable fee for managing the transaction.
Interchange Fee
1.8%
+
Our Markup
0.3%
=
Total Fee Paid
2.1%
Customized Interchange Plus Plans
We offer customizable Interchange Plus pricing plans to fit your unique business needs. Whether you prefer a percentage-based markup or a fixed fee per transaction, our flexible options ensure that you have a pricing model that works best for your operation.
Percentage-Based Markup
Ideal for businesses with smaller transaction amounts but high frequency.
Flat-Fee Markup
Best for businesses with larger transaction values, providing predictable per-transaction fees.
Frequently Asked Questions
01
What is Interchange Plus Pricing?
Interchange Plus Pricing is a transparent payment processing pricing model where the merchant pays the interchange fee set by card networks (Visa, Mastercard, etc.), plus a fixed markup from the payment processor.
02
What is the difference between Interchange Plus, Tiered Pricing and Flat Rate Pricing?
Interchange Plus pricing provides complete transparency by breaking down the transaction fee into two parts: the interchange fee and a fixed markup.
Tiered pricing, on the other hand, groups transactions into buckets (qualified, mid-qualified, non-qualified), often obscuring the true cost of each transaction and resulting in higher fees for certain transactions.
Flat-rate pricing charges a single percentage for all transactions.
03
Are interchange rates the same for all transactions?
No, interchange rates vary depending on factors such as card type (credit vs. debit), the issuing bank, transaction risk, and whether the card was present during the transaction. Interchange Plus pricing reflects these differences directly, passing the actual interchange cost to you with no additional markups.
04
How do I know what interchange rate applies to my transactions?
We provide detailed reporting on every transaction, including the exact interchange fee charged by the card network. You’ll always have full visibility into your processing costs.
05
Can I negotiate the interchange fee?
Interchange fees are set by the card networks and are not negotiable by merchants or payment processors. However, our transparent markup ensures you only pay the interchange fee plus our fixed margin, giving you full control over your processing costs.
06
What does the "Plus" refer to in Interchange Plus?
The "Plus" refers to the payment processor’s markup, which is a fixed amount added on top of the interchange fee for each transaction. Common markups include a percentage (e.g., 0.30%) or a flat fee (e.g., $0.10) per transaction, added to the interchange rate.
07
How are interchange fees determined?
Interchange fees vary based on several factors: card type (credit vs. debit), transaction type (in-person vs. online), and the risk level of the transaction. These fees are published by the card networks but fluctuate based on these criteria.
08
Is Interchange Plus Pricing better for my business than other pricing models?
It depends on your transaction volume and card mix. Interchange Plus Pricing is typically more transparent and cost-effective for businesses with high transaction volumes, as it avoids inflated flat-rate fees.
09
Can I see a breakdown of my fees with Interchange Plus Pricing?
Yes, Interchange Plus Pricing is known for its transparency. Merchants can see the exact interchange fee for each transaction and the processor’s markup, allowing for easier cost analysis.
10
Are all card types covered under Interchange Plus Pricing?
Yes, but different card types (e.g., premium cards, rewards cards, corporate cards) have different interchange rates. High-reward or business cards usually carry higher interchange fees compared to standard debit or credit cards.