Interchange Plus

It’s easiest to think of an Interchange rate as the base fee card companies (Visa, MasterCard, AMEX, etc.) charge merchants for processing card transactions. Interchange rates are subject to change depending on their category and specific requirements, such as what kind of card was used (personal, business, debit, credit, etc.), whether the transaction took place online or in person, and other variables.

As a general rule of thumb, interchange rates can range anywhere from 0.5% all the way to 2.95%. It really depends on what requirements/categories the transaction falls into. Some card companies share their interchange rates on their website, so be sure to have a look for a more accurate depiction of what you’ll be paying.

Interchange plus pricing works by adding a fixed markup to a card company’s interchange fees. Interchange plus pricing is made up of two components: The interchange fees charged by the card brand (as mentioned above), and the plus refers to markup fees from your credit card processor that are applied to every credit card transaction.

When it comes to interchange-plus rates, it’s not a one-size-fits-all model. Instead, the costs will vary as there are different rates for different types of credit cards, as well as different rates for card-present and card-not-present transactions. It’s also important to know that interchange rates imposed by the card companies are non-negotiable; you can only improve upon what your processor is tacking on the above interchange.

Interchange Plus is one of the fairest methods available to merchants because of its transparency. Once only available to large businesses with high sales volumes, now more processors are offering Interchange Plus pricing to small businesses.

Keep in mind that with Interchange Plus, your monthly credit card processing fees will vary month to month. If you’re a smaller business and want to pay the same amount each month, another rate option might seem more suitable. Talk to one of our Payment Experts to see what option might be best for your business goals.

You’re more likely to save money with Interchange Plus, as you can see from the charges on your statement, companies will typically offer you a more competitive rate in the long run.

Interchange Plus pricing is highly transparent in that all the charges are disclosed on your statement, making it harder for processors to tack on extra fees. You pay exactly what Visa and MasterCard are charging, based on the type of card your customer is using.

Because the interchange fee varies, the savings come in when you process a credit card with a lower interchange fee.

At the end of the day, the pricing structure you choose will be based on factors only you can prioritize. Rest assured we are your business ally. We have many options to choose from, and we will work with you to get the best rates available for your business. Give our Payment Experts a call, and we’ll be happy to find the best solution to fit your needs.

Unlike with other pricing structures, your business benefits from the lower interchange rate for processing a less expensive card.