Interchange-Plus Pricing
What is interchange-plus pricing?
Interchange-plus (also called cost-plus) is a credit card processing pricing model where you pay the actual interchange rate set by Visa and Mastercard, plus a fixed markup from your processor. It's the most transparent way to understand your fees.
(interchange) +0.3% What your processor adds
How Interchange-Plus Pricing Works
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 |
Pricing models at a glance
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.
Interchange-plus pricing example
Here’s what a typical interchange-plus statement looks like for a $1,000 Visa credit card sale:
| 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 |
Compare this to flat-rate pricing: A flat-rate processor might charge 2.7% (same for all cards), which on this sale would be $27 instead of $16. That’s $11 more per $1,000 in volume.
What's a good interchange-plus rate?
Your effective rate will vary based on your card mix, but you can calculate it:
For a 2.35% effective rate with a 0.3% markup, you’re in the sweet spot for most high-volume 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 |
Interchange-plus vs tiered pricing
Tiered pricing divides cards into “qualified,” “mid-qualified,” and “non-qualified” buckets with different rates. This is often the most expensive model:
The problem: Processors can reclassify cards arbitrarily. A sale that should be qualified might be marked non-qualified, costing you 2%+ more. Tiered pricing favors the processor, not you.
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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
Yes — but only the right fees. Interchange fees (set by Visa/Mastercard) are non-negotiable. But the processor's markup, monthly fees, and statement fees are almost always negotiable, especially if you have consistent volume. Most merchants never ask, which is exactly how processors like it. Learn what's negotiable →
Interchange-plus (also called cost-plus) is the most transparent pricing model. You pay the actual interchange rate set by the card networks, plus a fixed markup from your processor. You can see exactly what each party earns. It's almost always cheaper than flat-rate or tiered pricing for established businesses. Compare all pricing models →
Start with your effective rate: total fees divided by total volume, times 100. That single number tells you more than most of the line items. Then look at the "other fees" section — that's often where silent overcharges like PCI non-compliance fees, statement fees, and batch fees hide. Full statement decoder guide →
Dual pricing means offering two prices at the register — one for cash and one for card — so that card-paying customers cover the processing fee rather than the merchant. It is legal in all 50 states following the repeal of card surcharge restrictions, though specific disclosure rules apply. Full dual pricing guide →
PAIR earns when merchants choose to move to a better processing structure through us. You never pay us directly. The audit is genuinely free with no strings — if you're already on a competitive rate, we'll tell you that honestly. Our business only works if the advice is good.
No. The audit is free with zero obligation. We only recommend switching if the savings are meaningful and clear. Some merchants come back for an audit and find out they're already well-priced — that's a good outcome too.
We turn around plain-English audit reports within 24 hours. If you upload your statement, we can usually move faster. The report shows your effective rate, a fee-by-fee breakdown, what you should be paying, and a clear recommendation.