Interchange Plus pricing passes the actual network cost directly to you — with a fixed, transparent markup.
Interchange Plus is the most transparent and typically most cost-effective way to pay for credit card processing. Here's exactly how it works, how it compares to tiered pricing, and what it means for your bottom line.
Interchange Plus (also called "cost-plus" or "pass-through" pricing) is a credit card processing pricing model where you pay two clearly disclosed components on every transaction:
1. The actual interchange rate — set by Visa or Mastercard, the same for every processor, published publicly, and non-negotiable.
2. The processor's markup — a fixed percentage and/or per-transaction fee added on top. This is the processor's profit. It's disclosed upfront and doesn't change based on card type.
On your statement or contract, it looks like this: "Interchange + 0.20% + $0.10 per transaction."
That's it. No tiers, no downgrade fees, no hidden markups. What you see is what you pay.
Let's walk through a real example. A customer pays you $100 with a standard Visa rewards card. The interchange rate for that card type is 1.65%.
On this single transaction, Interchange Plus saves $0.54. That might sound small — but at $50,000 in monthly volume with similar card mix:
| Tiered Pricing | Interchange Plus | |
|---|---|---|
| Transparency | Low — markup hidden in tiers | High — all costs disclosed |
| Processor markup visible? | No | Yes — clearly shown |
| Downgrade risk | High — processor decides tier | None — fixed markup |
| Rewards card handling | Often downgraded to higher tier | Interchange adjusts, markup stays fixed |
| Cost for debit cards | Same rate as credit | Lower — reflects actual interchange |
| Predictability | Varies month to month | Markup is always consistent |
| Best for | Processors' profits | Your business |
Interchange Plus pricing benefits virtually every type of business, but the savings are largest for businesses where one or more of these apply:
High volume: The more you process, the more the markup difference compounds. A 0.3% lower effective rate on $100,000/month = $3,600/year.
Mixed card types: Businesses that accept a mix of debit, credit, rewards, and corporate cards benefit because each card is priced at its actual interchange cost — not a blended tier rate that overcharges on cheap cards to compensate for expensive ones.
Businesses with corporate or B2B customers: Corporate and purchasing cards have higher interchange rates, which tiered processors often send to the non-qualified tier — at maximum markup. Under Interchange Plus, corporate cards cost more because interchange is genuinely higher, but you avoid the additional tiered surcharge on top.
Most major processors offer Interchange Plus pricing — they just don't always lead with it, because tiered pricing is more profitable for them. Here's how to get it:
Step 1 — Ask directly. Call your current processor and say: "I'd like to switch to Interchange Plus pricing. What would my markup rate be?" If they say they don't offer it, they're either not being truthful or they're a processor you should leave.
Step 2 — Get the markup in writing. A competitive markup is 0.10%–0.30% plus $0.05–$0.15 per transaction. Anything above 0.50% plus $0.15 is above market for most volume levels.
Step 3 — Compare your current effective rate. Calculate what you're paying now (Total Fees ÷ Total Volume) and get a quote for what you'd pay under Interchange Plus with a competitive markup. The difference is your estimated annual savings.
Step 4 — If your current processor won't offer competitive Interchange Plus pricing, it's time to compare alternatives. Submit your statement to us — we'll calculate your true current effective rate and show you exactly where your costs could be reduced.
Submit your merchant statement and we'll identify your current pricing model, calculate your effective rate, and show you what you could be saving.
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