Interchange-Plus Pricing For Card Payment Processing

Here is the illustration depicting a transparent pricing model in a business setting.

Merchant Account Interchange-Plus Pricing Explained

Interchange-Plus Pricing is a merchant account pricing model distinguished by its transparency and detailed breakdown of costs. This model separates the interchange fees, which are the base costs set by credit card networks and paid to card-issuing banks, from the processor's markup. Unlike tiered or flat-rate pricing schemes, Interchange-Plus provides a clear view of the exact charges incurred for each transaction, allowing business owners to better understand their payment processing expenses. This pricing structure is particularly appreciated by merchants for its straightforwardness and potential to help manage costs more effectively.

Components of Interchange-Plus Pricing

Interchange-Plus Pricing consists of three main components: interchange fees, assessment fees, and the markup. The interchange fee is the cost set by the credit card networks that goes to the card-issuing bank for each transaction. Assessment fees are additional charges determined by the card networks to cover various administrative and maintenance costs associated with processing payments. The markup, charged by the payment processor, represents the profit margin and covers service-related expenses. This clear separation of fees under the Interchange-Plus model ensures transparency, allowing merchants to see exactly what they are paying for each component of a transaction.


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