What is interchange-plus pricing?
You pay the bank's fee on each card at cost, plus one fixed markup you can see on your statement.
Because the markup is shown on its own, you can check it every month and compare it with other offers. When customers use cheaper cards, your fees go down with them.
For example
Your statement lists the bank's fee for each sale at cost, then a separate line for the processor's markup, so you can see exactly what the processor earns.
Related terms
- InterchangeThe fee the customer's bank charges on every card sale. It's the same no matter which processor you use.
- MarkupThe part of your card fee that goes to your processor. It's the only part anyone can negotiate.
- Flat-rate pricingOne percentage for every card, like 2.9%. Easy to read, but you overpay on cheaper cards like debit.