Pay closer to the true cost.
Interchange plus pricing is one of the most cost effective ways to process payments. Instead of charging the same rate on every card, it follows the actual cost of the card and then adds a clear markup on top.
That matters because not every card costs the same. Lower cost cards can stay lower cost. This is why interchange plus is often a much stronger value than flat rate pricing.
Cost plus markup.
Interchange is the card cost. Then the processor markup is added separately. That keeps pricing cleaner and usually much more efficient.
Why interchange plus is so effective.
With interchange plus, you are paying the card cost plus a clear markup. You are not forcing every card into one higher flat rate.
Pay the cost plus.
Interchange is the base cost tied to the card brand and card type. It is not the same on every card. With interchange plus, that cost stays visible.
- Clear pricing structure
- Lower cost cards stay lower
- Easy to compare against flat rate pricing
Debit can stay cheap.
A retail debit card usually has one of the lowest costs. Interchange plus lets you benefit from that instead of paying a higher flat rate.
- Retail debit is usually lowest
- Credit usually costs more than debit
- Online and keyed payments usually cost more
See what you are paying.
Flat rate pricing can look simple, but it can also hide how expensive it really is. Interchange plus makes the structure easier to understand.
- More transparent than flat rate
- Easier to explain to merchants
- Strong fit for growing volume
Let lower cost cards stay lower.
The biggest advantage of interchange plus is simple. Not every card costs the same to accept. A debit card used in person usually carries a lower cost than a rewards credit card used online or keyed over the phone.
Flat rate pricing does not reflect those differences very well. Interchange plus does.
Interchange is the cost.
This is the base cost tied to the card brand and the way the payment is run.
The markup is added after.
With interchange plus, the markup sits on top of the base cost instead of being buried inside one higher rate.
Lower cost cards can save more.
This is why debit and retail transactions can be much more cost effective under interchange plus.
Interchange changes by card type.
Here is the simple version. Costs change depending on the card and how it is accepted.
Retail debit.
Usually the lowest. Card present debit is often the most cost effective.
Retail credit.
Usually higher than debit, but often still lower than online or keyed payments.
eCommerce.
Online payments usually cost more because the card is not physically present.
Keyed or MOTO.
Keyed, phone, and mail order payments usually cost more because the risk is higher.
The debit card difference.
Same type of sale. Same Visa debit card. Two very different outcomes.
You keep more of the sale.
The Visa debit card has a very low cost. With interchange plus, that low cost stays low.
You pay much more for the same card.
Here, the same low cost Visa debit card is charged a flat rate instead of following the actual card cost.
When interchange plus makes sense.
Interchange plus pricing is often a strong fit for merchants who want better pricing, clearer structure, and more value from lower cost cards.
Best fit for interchange plus.
This pricing model is especially useful when your business has volume, mixed card types, or a lot of lower cost card present payments.
| Merchant goal | Why interchange plus fits | What to consider |
|---|---|---|
| Lower effective cost | Lower cost cards are not forced into one higher flat rate. | The exact savings depend on card mix and volume. |
| Transparent pricing | Interchange and markup are separated. | Statements may show more detail than flat rate pricing. |
| Growing monthly volume | As volume grows, pricing efficiency matters more. | It helps to review actual processing history. |
| Retail or card present sales | Retail interchange is often lower than online or keyed transactions. | Card present debit can be especially efficient. |
Interchange plus questions.
These are the main things merchants ask before choosing interchange plus pricing.
What does interchange plus mean?
It means your pricing is based on the card cost plus a separate markup. This is why it can be more cost effective than flat rate pricing.
Why can interchange plus cost less?
Because lower cost cards stay lower cost. You are not paying the same flat rate on every single transaction.
Is retail usually lower than eCommerce?
Yes. Retail card present transactions are usually lower cost than online, keyed, phone, or mail order payments.
Is debit usually lower than credit?
In many cases, yes. Debit often carries a lower cost than credit, especially when the transaction is run in person.
Is interchange plus better than flat rate?
It often is, especially when you want strong pricing and more value from lower cost transactions.
Want pricing that follows your true card cost?
I can help you compare interchange plus pricing against flat rate, zero fee processing, cash discount, and surcharge options so you can choose the structure that gives your business the best fit.