How Does Interchange Plus Pricing Work?

We'll walk you through how Interchange Plus Pricing can help you get the absolute best rate for your organization.

Interchange Plus Pricing is a pass-through setup in which the merchant receives the actual interchange rates (which is passed onto you at cost) plus a set of basis points (which is a percent) and a small transaction fee. In addition, payment processing companies will add a transparent profit of a mixture of basis points + transaction fees.

Interchange Rate (cost) + Basis Points (%) + Transaction Fee

Interchange Plus is a pricing option typically reserved for higher volume merchants (50–60K) in monthly volume or for merchants who are currently being provided Interchange Plus Pricing. However, this is the most desired form of pricing for businesses seeking the least expensive, most transparent pricing platform. Interchange Plus allows the merchant to pay the exact interchange rate dictated by card issuing banks along with Visa, MasterCard and Discover.

There are many benefits to this format; it is very competitive, transparent, and a processor’s profit margin remains the same regardless of a customer’s volume. Whether the merchant does $1,000.00 a month or $ 100,000.00 a month, the margin above cost always remains the same.