Pricing Model

Interchange-Plus Pricing Explained

Interchange-plus pricing separates the cost of interchange (paid to the card-issuing bank) from the processor's markup, disclosing both as distinct line items on your statement. It is widely considered the most transparent payment processing pricing model.

Last reviewed: July 4, 2026 · Editorial policy

Quick Answer

With interchange-plus pricing, you pay interchange (the cost set by card networks, passed to the issuing bank) plus a fixed processor markup (e.g., 0.25% + $0.10 per transaction). Both components are disclosed separately on your statement, making it easier to audit your actual costs and compare processors.

How Interchange-Plus Pricing Works

Every card transaction involves three cost layers: interchange (a percentage that goes to the card-issuing bank, set by Visa, Mastercard, Discover, or Amex), assessment fees (a small percentage that goes to the card network itself), and processor markup (what your payment processor charges for the service).

Under interchange-plus pricing, your processor passes interchange and assessment fees through at their actual cost — no bundling. The processor then adds its own transparent markup, typically quoted as a percentage plus a per-transaction cent amount (e.g., 0.30% + $0.10). That markup is the same regardless of which card type the customer uses.

Because interchange rates vary by card type (reward cards, corporate cards, and debit cards all have different interchange rates), your effective rate under interchange-plus will fluctuate month to month based on your customers' card mix. This is a feature, not a bug — it means you're paying actual cost rather than a blended estimate.

When Interchange-Plus May Work Well

Established merchants with predictable monthly volume who want full cost transparency
Businesses with a card mix heavy in debit or standard credit cards (lower interchange rates)
Merchants who review their statements regularly and want to audit processor charges
Businesses that process in-person transactions where card-present interchange rates apply
Merchants comparing multiple processors who need a consistent benchmark to evaluate markup

When It May Not Fit

Very low volume merchants where per-transaction fees and potential monthly fees outweigh simplicity benefits
Businesses that prefer predictable, fixed costs over variable monthly bills
Merchants whose customers predominantly use high-interchange reward cards or corporate cards
Situations where the processor's quoted markup is not competitive — the model only helps if the markup is reasonable

Advantages

  • Interchange and markup are disclosed separately — easier to audit
  • Processor markup is the same across all card types
  • Lets you compare processors on an apples-to-apples basis (markup only)
  • You benefit directly when customers use lower-interchange cards

Trade-offs

  • Monthly effective rate varies with your card mix
  • Statements can be more complex to read than flat-rate
  • Some providers pair interchange-plus with monthly fees
  • Requires basic understanding of interchange to interpret your statement

Common Misconceptions

❌ Myth: Interchange-plus is always cheaper than flat-rate.

✅ Fact: Whether interchange-plus costs less depends on your card mix and the markup offered. A flat-rate of 2.6% may be less expensive for a merchant whose customers use predominantly premium reward cards with high interchange rates.

❌ Myth: The 'plus' is the only cost.

✅ Fact: The 'plus' is the processor markup. But you also pay interchange (which varies by card type) and assessment fees (card network fees). All three are real costs — interchange-plus just shows them separately rather than blending them.

❌ Myth: Interchange-plus means you're getting wholesale pricing.

✅ Fact: Interchange-plus means interchange is passed through at cost. The processor's markup on top is still a fee. Membership/subscription pricing is sometimes described as 'wholesale' because it replaces per-transaction markup with a flat monthly fee instead.

Providers with Interchange-Plus Pricing

The following providers in the ProcessorFit directory publicly disclose interchange-plus or interchange pass-through pricing. Always verify current terms directly.

Frequently Asked Questions

Related Content

This page is educational and based on publicly available information. ProcessorFit does not guarantee pricing, savings, or approval outcomes. Verify all fee details directly with providers before making decisions. Editorial policy.

Sources checked

  • Visa published interchange reimbursement fees, checked July 2026
  • Mastercard interchange rate documentation, checked July 2026
  • ProcessorFit research interpretation based on public provider documentation

Verification note

Interchange rates are set by Visa and Mastercard and are updated periodically. Processor markup rates (the 'plus' portion) vary by provider and are not published here. Verify current rates and markups directly with providers.