Interchange-Plus Pricing
What is interchange-plus pricing?
Interchange-plus is the most transparent way to pay for credit card processing. You pay the actual cost set by Visa and Mastercard, plus a small, separate markup from your processor, and you can see both numbers on your statement. Most other pricing models hide the markup, which is why merchants on flat-rate or tiered plans usually overpay.
(interchange) +0.3% What your processor adds
How Interchange-Plus Pricing Works
How it compares to other models
There are three common pricing structures. Only one shows you the full picture.
Transactions are sorted into "qualified," "mid-qualified," and "non-qualified" buckets. Most end up in the expensive one.
One simple rate for everything. Easy to understand and manage, but you're paying a premium for the added simplicity and convenience.
You pay actual interchange plus a small markup. Full transparency into every fee, and typically the lowest overall cost for most businesses.
Would switching processors save you money?
No email required. Just a quick, free estimate.
This estimate is based on your monthly card volume and current approximate rate. Actual savings depend on your card mix, transaction types, average ticket size, and your processor’s markup. Want the real number from your statement? Get a free audit ↓
What it actually looks like on one sale
A $1,000 Visa credit card sale, billed under interchange-plus:
| Rate | Cost | |
|---|---|---|
| Interchange rate (Visa 1.29%) | 1.29% | $12.90 |
| Processor markup | 0.30% | $3.00 |
| Per-transaction fee | $0.10 | $0.10 |
| Total cost | 1.59% | $16.00 |
What's a good interchange-plus rate?
If you’re negotiating, here’s what to target for the markup:
| Under 0.3% | Excellent. Strong rate for established merchants with consistent volume. |
| 0.3% – 0.5% | Competitive. Most well-priced merchants land here. |
| 0.5% – 0.8% | Worth negotiating down, especially if you've been with the processor over a year. |
| Over 0.8% | You're overpaying. Time to renegotiate or switch. |
Interchange-plus vs other pricing models
| Tiered | Flat Rate | IC-Plus ⭐ | |
|---|---|---|---|
| Est. monthly cost | $1,050+ | $780 | $620 |
| See the markup? | ❌ | ❌ | ✅ |
| Can you negotiate? | ❌ | ⚠️ Limited | ✅ |
| Best for | Avoid | Low volume | $10K+ merchants |
Interchange-plus vs flat-rate: the real difference
| Factor | Interchange-plus | Flat rate |
|---|---|---|
| What you see | Every fee broken out | One single percentage |
| Negotiable fees | Processor markup only | Nothing — it's fixed |
| Cost at $500k/year | ~$12,000 (2.4%) | ~$13,500 (2.7%) |
| Best for | Established businesses | Startups, low volume |
| Control | High | None |
FREE · NO OBLIGATION · 24-HR TURNAROUND
Find out what you should actually be paying.
- Free statement analysis
- Line-by-line fee breakdown
- Industry benchmark comparison
- Plain-English savings report
Why we built this
Most merchants don't fully understand what they're paying in processing fees — and that's not their fault. The processing space is complicated, the terminology is dense, and good, unbiased information is hard to find. We built PAIR to change that. One resource where merchants can get everything they need to navigate payments, understand their options, find the right plan for their business, and start keeping more of what they earn.
COMMON QUESTIONS
Things merchants always ask
0.2% to 0.5% is the competitive range. Under 0.3% is excellent. Anything above 0.5% is worth negotiating, especially if you have meaningful volume. Plus a per-transaction fee that's usually $0.08 – $0.15.
No. Standard interchange-plus = interchange + processor markup. "Interchange-plus-plus" (sometimes called IC++) adds a third layer for card brand assessment fees, broken out separately. It's slightly more transparent but rarely changes the bottom line meaningfully.
Honestly, very little — for the merchant. The trade-off is that your statement is more detailed and your monthly fees vary based on card mix (a month with more rewards cards costs slightly more than a month with more debit). That's why merchants on tight cash flow sometimes prefer flat-rate's predictability, even though it costs more on average.
Call your account rep and say: "I want to move to interchange-plus pricing. What's your markup?" If they hedge, ask for it in writing. If they refuse or quote you above 0.5%, you have leverage to shop around. Most processors will move you rather than lose the account.