In this article, we will discuss the benefits that interchange-plus pricing offers. You may ask yourself ¿What is interchange-plus? It’s a pricing model that is used by credit card processors to determine the per-transaction cost paid by merchants. It’s a structure that separates the components of processing costs allowing for transparent reporting and interchange optimization often leading to lower costs when compared with other forms of pricing.


¿How does the interchange-plus pricing model work?

It breaks down the charges going to the issuing bank and credit card associations, allowing you to see the markup they’re charging you for processing your transaction. 


¿Why is interchange-plus pricing better? 
  • Price transparency: It is the most transparent and cost-effective form of merchant account pricing. The separation of processing costs with interchange plus also allows for the optimization of interchange expenses. You will always know the exact cost of every card. Overall interchange-plus pricing rates are usually lower than tiered rates.

  • Lower fees: Rates are based on marking up the actual interchange rates, paying the exact interchange instead eliminates these markups and lowers credit card processing fees. 


Interchange plus is the most desirable form of merchant account pricing not only because of its transparency but businesses usually end up paying lower processing costs with this model. That being said interchange-plus pricing is more favorable for businesses.


ABPay is always ready and available to guide you to the best pricing plan option that will suit your business. For more information or getting a quote, you can contact us at your earliest convenience.

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