If you are a business owner who accepts credit cards, you may have noticed some confusing fees on your statement. That’s where Interchange Plus pricing comes in—it streamlines the process and provides the transparency you’ve been craving.
At base, Interchange Plus pricing separates out your credit card processing fees into two components: the interchange fee set by the card networks, and a markup added by your payment processor. Unlike some other models that conceal the true cost, this setup reveals right where your money goes. Being able to see with such clarity is essential to making intelligent financial decisions, particularly if your business is one conducted at considerable transaction volume.
Why does this matter? Because processing credit cards isn’t free. Whenever your customer makes a swipe, a tap, or keys in their card, a network of banks and processors takes a bite out of the sale. And depending on your pricing model, those slices could add up fast—sometimes without you even realizing it.
There are a few reasons for this: flat-rate pricing, which provides clear simplicity but not always clear visibility; tiered pricing, which groups transactions into categories that can be confusing; and Interchange Plus pricing, which breaks everything down cleanly.
If you are ready to stop overpaying or wondering about fees, Interchange Plus could be the step up your business has been looking for. Let’s find everything here.
What is the Interchange Plus Pricing?
Every credit card transaction payment processing comes with a non-negotiable cost—the interchange fee. This fee is set by major card networks like Visa, Mastercard, Discover, and American Express, and it’s paid directly to the issuing bank (the bank that gave the card to your customer).
Now, here’s the catch: not all interchange fees are created equal. These rates vary based on several factors:
- Card type (debit, credit, rewards)
- Transaction method (swiped in-person, keyed in, online)
- Risk level (fraud potential, location, card presence)
For example, a debit card transaction at a physical store might cost less than an online payment with a rewards credit card. That’s because one carries less risk and costs the bank less to process.
So while the interchange fee might sound like a fixed amount, it’s actually a whole matrix of costs—and it changes often. That’s why understanding this component is key to managing your processing expenses effectively.
What is the Plus (Markup)?
This is where your payment processor makes their money. The “plus” in Interchange Plus refers to a markup—a fixed percentage and/or per-transaction fee added on top of the interchange fee.
Here’s an example:
If the interchange fee is 1.80% and your processor adds 0.30% + $0.10 per transaction, then your total cost is 2.10% + $0.10.
Sounds simple, right? That’s the beauty of it. This markup is transparent and usually negotiable, especially if your business processes a high volume of sales or has a long-standing relationship with a provider.
Unlike other pricing models, you’ll always know exactly what your processor is charging you versus what’s being passed on to the banks.
How it Differs from Blended Rates?
In a blended or flat-rate model, everything gets lumped together. You’re shown a single fee—say 2.75%—regardless of what kind of card was used or how it was processed. While that looks simple on paper, it hides the actual costs.
With Interchange Plus, you see the real interchange fee + the processor’s markup, each line itemized. This clear breakdown helps you:
- Spot potential savings
- Negotiate better rates
- Understand exactly where your money goes
Bottom line? Interchange Plus gives you the full picture. No hidden surprises.
Pros of Interchange Plus Pricing
Transparency
Everyone will agree, surprise fees are the worst. Perhaps the greatest benefit to Interchange Plus pricing is its complete transparency. You don’t just read the final number. You’ll notice the true interchange fee and then the exact markup from your processor.
This might matter more than you think. It allows you to:
- Audit your processing costs line by line
- Compare rates between providers with confidence
- Spot hidden fees or rising markups before they become a problem
For any business that watches its bottom line (and really, who doesn’t?), this level of clarity is a game-changer.
Lower Long-Term Costs
Flat-rate pricing might sound convenient at first, but it usually eats hefty buffer to maintain the processor’s bottom line. Interchange Plus, meanwhile, keeps it lean.
Here’s how you save:
- If your customers mostly use debit or non-reward cards (which have lower interchange rates), you benefit from that directly.
- You’re only paying the actual cost + a fair markup, not a bloated one-size-fits-all rate.
- You avoid hidden margins that eat into your profits over time.
If your business processes a lot of transactions or sells higher-ticket items, the savings can really add up.
Scalable for Growing Businesses
As your business scales, your processing needs evolve—and Interchange Plus grows with you. It’s highly adaptable and perfect for merchants who:
- Process large or increasing volumes of sales
- Want to negotiate custom rates with processors
- Prefer flexible pricing that reflects their business activity
Unlike flat or tiered pricing models, which lock you into rigid structures, Interchange Plus allows room for adjustments and optimization over time.
So if you plan to grow—and who doesn’t—it’s a smarter long-term fit.
Cons of Interchange Plus Pricing
Complexity
Let’s not sugarcoat it: Interchange Plus statements aren’t always easy on the eyes. You’ll see more line items, codes, and fine print than in flat-rate models.
That can feel overwhelming, especially for:
- Small business owners
- Entrepreneurs new to merchant services
- Teams without dedicated finance staff
But here’s the upside: once you learn how to read it, you’ll gain a level of control over your processing fees that’s hard to beat.
Potential for Fee Overload
Even though Interchange Plus pricing itself is clear, some providers add extra charges that aren’t always obvious up front. These may include:
- Monthly service fees
- PCI compliance fees
- Statement or reporting fees
- Gateway access fees
If you’re not careful, these small extras can pile up—so it’s worth asking your processor for a full breakdown before signing anything.
Harder for New Businesses
New businesses sometimes struggle to get the best deal right out of the gate. That’s because:
- You might not have the volume to negotiate lower markups
- Some processors reserve their best Interchange Plus rates for high-volume merchants
- Setup might be more complex without a team to guide you
Still, many providers are willing to work with startups—especially if you show growth potential or plan to scale quickly.
Interchange Plus vs. Other Pricing Models
Knowing how Interchange Plus pricing compares with other models can help you decide on what actually works for your business — as opposed to what simply seems easiest from the outset.
Interchange Plus vs. Flat Rate Pricing
Flat rate pricing is like the fast food of merchant services—quick, predictable, and easy to understand. Companies like Stripe and Square made it popular with rates such as 2.9% + $0.30 per transaction.
Why people like it:
- Easy simple to understand
- No surprise fees or confusing statements
- Ideal for micro-businesses or startups
But there’s a catch: The simplicity often comes with a cost. Flat rates combine the costs of high and low interchange fees, so you might end up paying more — especially if your customers frequently use low-fee debit cards.
So although it’s more friendly to beginners, you’re in reality trading away transparency and possible savings in costs for ease of use and predictability.
Interchange Plus vs. Tiered Pricing
Now let’s talk about tiered pricing—the murkiest model of them all.
Here’s how it works:
- Your transactions are sorted into three buckets: Qualified, Mid-Qualified, and Non-Qualified.
- You’re charged based on how the processor classifies the transaction.
- Sounds okay… until you realize you don’t control the buckets, and processors rarely explain how transactions are categorized.
This frequently results in overpaying, with more transaction pushed up to the expensive “Non-Qualified” tier. Worst of all, it is nearly impossible to audit or verify where your money actually goes.
On the other hand, Interchange Plus pricing provides full transparency on the base cost as well as the processor’s markup. No buckets. No guesswork. Just clarity.
If you want to get serious about understanding and controlling your credit card processing fees, Interchange Plus is a clear winner.
Who Should Choose Interchange Plus Pricing?
Is Interchange Plus the best scenario for any business ? Not really. It comes with no shortage of benefits, but it’s not a one-size-fits-all answer. Who benefits most — and who might want to skip it?
Ideal Business Types
If you process a high volume of business, you probably could save money on those processing fees if you used Interchange Plus. This is also true for businesses with an average ticket size above $20. Every tenth of a percent counts at that level, and transparency helps you recognize — and cut — any unnecessary fees.
Some perfect-fit examples include:
- B2B service providers who deal with large invoices
- Subscription-based businesses that process recurring payments
- Retailers or eCommerce shops with steady transaction volume
If you’re looking to optimize every cent you spend on payment processing, Interchange Plus gives you the flexibility to do that.
When Not to Choose?
That being said, it’s not the best fit for every merchant. If you’re relatively new to this or only rarely run transactions, the complexity might not be worth it. So, too, do business owners who prefer simplicity to savings.
Flat rate pricing may be a better option if:
- Your monthly volume is under $5,000
- You hate digging through detailed statements
- You just want to swipe and forget
Bottom line? Interchange Plus is for businesses that are ready to grow strategically and manage costs with intention.
How to Negotiate Interchange Plus Rates?
Here’s the good news: Interchange Plus pricing is negotiable. But you need to come to the table prepared. That means knowing your numbers and asking the right questions.
Know Your Numbers
Before negotiating with any payment processor, gather this data:
- Monthly transaction volume – Higher volume means better leverage
- Average ticket size – Are you running $5 coffee sales or $500 invoices?
- Card mix – Debit, credit, rewards cards? It all affects your interchange fees
This info helps you understand your processor’s cost—and how much room they have to work with.
Ask the Right Questions
Don’t stop at, “What’s your rate?”
Ask:
- What’s your markup on top of interchange?
- Are there any monthly fees?
- Do you charge for PCI compliance or statements?
- Is there a cancellation fee?
Push for clear, written answers. If a processor gets cagey, that’s a red flag.
Compare Multiple Processors
Never sign with the first provider you talk to. Instead:
- Request sample statements based on your real numbers
- Use third-party comparison tools or speak with a payments consultant
- Don’t just look at rates—check for reliability, support, and transparency
When done right, negotiating Interchange Plus pricing can lead to real, measurable savings month after month.
How to Read an Interchange Plus Statement?
If you’re keeping an eye on credit card processing fees, it is imperative to understand Interchange Plus statement to make right choices. At first glance, it may seem daunting, but by breaking it into bite-sized pieces, you are able to take control of your costs.
Sample Statement Breakdown
Let’s walk through a typical statement to see what you’ll find:
- Interchange Fees Section – This section shows the exact fees set by card networks like Visa or Mastercard. You’ll see a breakdown of what you’re being charged for each card type and transaction.
- Processor Markup – Here, you’ll see the fee your processor adds on top of the interchange. This fee can be a fixed percentage plus a per-transaction fee (e.g., 0.30% + $0.10).
- Other Fees – Look for additional costs like PCI compliance fees, chargeback fees, and monthly statement fees. These are typically separate from your interchange and processor charges.
Common Charges to Watch
Even with Interchange Plus, you’ll still encounter a few potential charges you need to keep an eye on:
- Non-qualified Surcharge – If your transactions don’t meet certain criteria, you might get hit with higher fees.
- Monthly Minimums – Some processors charge a minimum fee, so be aware of what you’re expected to pay regardless of your volume.
- Batch Fees – These are fees for submitting transactions to the processor and can add up if you have a high volume of transactions.
How to Switch to Interchange Plus Pricing?
Making the switch to Interchange Plus pricing may seem intimidating, but it doesn’t have to be. Here’s how you can do it smoothly:
Steps to Transition
- Review your current contract – Check for any early termination fees or long-term commitments that might affect your decision.
- Get quotes from multiple providers – This ensures you’re getting the best deal. Look for transparency and clear pricing structures.
- Evaluate cancellation terms and setup fees – Make sure you’re aware of any potential costs to switch.
Red Flags to Avoid
- Hidden fees – Watch out for providers that claim to offer Interchange Plus but tack on additional charges.
- Long lock-in periods – Be cautious about processors that lock you into long contracts, making it difficult to switch again if needed.
Final Thoughts
If you are a high volume business with high sales volumes, interchange plus pricing is great for transparency and possibly long term savings. It does have a learning curve, but the potential advantages — better cost control and lower fees, for example — far outweigh the complexity involved.
If you want more control over your payment processing costs, consider investigating this pricing model and what it can do for your business.
Frequently Asked Questions
Q1: Is Interchange Plus always cheaper?
Not always, but it’s generally more cost-effective at scale. For high-volume businesses, the transparency and structure of Interchange Plus can lead to savings compared to other pricing models.
Q2: Can I switch from flat rate to Interchange Plus easily?
Yes, you can switch, provided you’re not locked into a long-term contract. It’s a simple transition that could help you save money in the long run.
Q3: Are Interchange rates negotiable?
No, the Interchange rate itself is set by card networks like Visa or Mastercard and can’t be negotiated. However, the “Plus” (processor markup) is negotiable, giving you room to work with your processor for better rates.
Q4: Is Interchange Plus good for e-commerce?
Yes, especially for growing or high-ticket e-commerce stores. The model provides flexibility and scalability, making it an ideal choice for businesses that process many transactions or have larger average ticket sizes.
Q5: What’s a good Interchange Plus rate?
A good Interchange Plus rate generally ranges between 0.15%–0.50% + $0.10–$0.25 per transaction, depending on your volume and the specific negotiation with your processor.