Interchange-plus is a pricing model used by card processors that determines the cost of each transaction paid by merchants. This model consists of two important points to take into consideration: the exchange rate determined by the card networks and a margin established by the credit card processor itself.
Exchange Pricing Plus is one of the very well balanced and fair pricing systems used in the processing industry, largely due to transparency in processes. On average, trade-in prices plus will cost business owners about 2.2% + $ 0.22.
Business owners purchased processing blueprints with Interchange Plus Pricing will find their costs vary based on the types of cards their customers use. The reason for this is that the first half of the Interchange Plus is based on the exchange rate, being clearer when changing from card to card. We can take the case of a Visa debit card as an example, it will have an interchange fee of around 0.8% + $ 0.15, while the Mastercard credit card will cost your business 2.3% + $ 0.10 per transaction.
If you operate a smaller business, you may prefer previous rates, these rates are always easier to understand, in the event that a business is larger or you want a lower rate, it is convenient to use Interchange Plus Pricing. Its advantage is that a business owner is allowed all the necessary information and control when negotiating their processing costs.
The advantage for merchants of a flat price is that it makes it easy to accurately forecast transaction costs each month. Interchange Plus program prices are generally easier for merchants to accept than fixed prices, especially for businesses whose customers have a preference for making credit card payments.