Interchange Plus vs Flat Rate Pricing

When it comes to accepting credit card payments for your business, there are two main pricing models to choose from: Interchange Plus and Flat Rate. In this blog, we’ll explore the differences between the two models, so you can make an informed decision about which one is right for your business.


Interchange Plus Pricing

Interchange Plus pricing is a transparent pricing model where you pay a markup over the cost of the credit card transaction. The cost of the transaction called the “Interchange fee” is set by the credit card companies and varies based on factors such as the type of card and the type of transaction. With Interchange Plus pricing, you know exactly what you’re paying for each transaction, and you can see the breakdown of the cost, including the Interchange fee, the markup, and any other fees. This makes it easier for you to understand the cost of your transactions and budget for them. One of the main benefits of Interchange Plus pricing is that it’s more cost-effective for businesses with a high volume of transactions. Because the cost of each transaction is based on the Interchange fee, the more transactions you process, the lower the overall cost of each transaction.


Flat Rate Pricing

With Flat Rate pricing, you pay a fixed rate for each transaction, regardless of the type of card or the type of transaction. This model is simpler, as you know exactly what you’ll pay for each transaction, but it can be more expensive than Interchange Plus pricing for businesses with a high volume of transactions. Flat Rate pricing is best suited for businesses with a low volume of transactions or businesses that want a simple and straightforward pricing model. It’s also a good option for businesses that want to avoid the complexity of understanding the Interchange fees and markups. When choosing between Interchange Plus and Flat Rate pricing, consider your business’s specific needs and volume of transactions. If you have a high volume of transactions and want a more cost-effective pricing model, Interchange Plus pricing may be the right choice for you. However, if you have a low volume of transactions or want a simple and straightforward pricing model, Flat Rate pricing may be a better option.

No matter which pricing model you choose, it’s important to choose a reputable credit card processor that provides transparent pricing and excellent customer support. With the right credit card processor, you can accept credit card payments with confidence and grow your business.


If you have further questions don’t hesitate to reach out to our team or 800-595-4854.

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