How interchange-plus pricing works

  • The merchant pays the applicable interchange and network costs for each transaction.
  • The processor adds an agreed markup, often expressed as basis points and a per-item fee.
  • Actual interchange varies by card type, transaction method, merchant category and qualification.
  • The processor markup should remain distinct from the underlying interchange categories.

What it can reveal

  • Processor markup is easier to identify than in many bundled pricing structures.
  • Merchants can compare cost by card type and qualification category.
  • Statement analysis can show whether expensive transactions are caused by processor markup or underlying qualification.
  • Commercial-card and card-not-present patterns become easier to isolate.

What interchange-plus does not fix by itself

  • It does not automatically improve interchange qualification.
  • It does not guarantee the gateway transmits required Level II or Level III data.
  • It does not eliminate network, gateway, PCI, device or other processor fees.
  • It does not replace the need to review settlement behavior and downgrade reasons.

Questions to ask before switching

  • What exact markup is being added to interchange?
  • Which additional monthly, annual, gateway or per-item fees apply?
  • Will the existing gateway, ERP, POS or ecommerce integration remain supported?
  • How are commercial cards, card-not-present transactions and refunds reported?
  • Can the processor provide transaction-level interchange or qualification detail?

Use pricing transparency as a management tool

  • A clear statement makes it easier to monitor cost over time.
  • Merchants can separate pricing negotiations from operational optimization.
  • Periodic reviews can identify changes in card mix, fees, downgrade patterns and transaction behavior.
  • The best pricing model is the one that can be understood, monitored and supported by the merchant's actual payment workflow.