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Interchange Plus Pricing Program

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Are you a merchant who currently processes a large monthly volume and would like better pricing? Most merchants are billed under a pricing plan called 3-tiered. Another pricing schedule that is more cost effective is called Interchange plus pricing.

Visa & MasterCard have several dozen rates known as Interchange that determines the rate a merchant must pay for a particular transaction. The applicable Interchange rate is determined by various circumstances, such as was the card swiped, keyed-in with(out) AVS, is a business, corporate or reward cards.

3-Tiered Pricing VS. Interchange Plus Pricing

Under the 3-tiered pricing plan, you pay one of three rates called Qualified, Mid-Qualified & Non-Qualified. The rate you pay for each transaction is determined by the applicable Interchange rate. Under the Interchange plus pricing plan, we simply pass along actual Interchange cost and add a set markup to every transaction.

The chart below should demonstrate the concept and make things clearer.

Are you currently paying 3-tiered credit card processing rates and want to know how to compare this to the more cost effective Interchange plus plan? The following example should make things clearer. Lets say you decided to go to the grocery store and purchase 3 apples. The prices for all of the available apples are listed below. The ones you selected are Apple 1, Apple 5 & Apple 8.
The apple prices below represents Visa & MasterCard Interchange cost.
Apple 1 costs $0.01
Apple 2 costs $0.02
Apple 3 costs $0.03
Apple 4 costs $0.04
Apple 5 costs $0.05
Apple 6 costs $0.06
Apple 7 costs $0.07
Apple 8 costs $0.08
Apple 9 costs $0.09
Apple 10 costs $0.10

In this example under a 3 tiered pricing plan you would have paid a total of 30 with the following credit card processing rates: (5 qualified, 10 mid-qualified & 15 non-qualified). This is calculated as follow: Apple 1 would be qualified at 5, Apple 5 mid-qualified at 10 and Apple 8 non-qualified at 15.

Lets assume's markup in this example is 5. Under the Interchange plus pricing plan, you would have paid 19 total. This is calculated as follow: Apple 1 at 1 + Apple 5 at 5 + Apple 8 at 8 = 14 + our 5 markup, making a grand total of 19.

What is's Offer?'s markup under the Interchange plus program varies based on your business type, average monthly volume and transaction size. Please call or email us for a rate quote and let us know you are interested in the Interchange plus pricing program.

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