Glossary/Pricing Models
Pricing Models

Flat-Rate Pricing

A single fixed rate applied to every transaction regardless of card type. Simple to understand, but rarely the lowest cost at meaningful volume.

Flat-rate pricing charges a single blended percentage (and sometimes a per-transaction fee) on every card, regardless of whether the transaction is a basic debit card or a premium rewards card. The rate never changes.

The appeal is simplicity. You always know what you'll pay. There is no statement analysis required, no downgrade fees, no tiered surprises.

The cost: flat-rate processors profit by averaging. Basic debit interchange is roughly 0.05–0.80% depending on the Durbin status of the card. Rewards card interchange runs 1.5–2.3%. When a processor charges you 2.6% on everything, it is covering its costs on the expensive transactions by overcharging on the cheap ones. The bigger your volume, the more you overpay.

For businesses doing under $5,000/month, flat-rate pricing may be acceptable given the simplicity. Above that, the premium compounds quickly. A merchant doing $100,000/month on flat-rate vs. a competitive IC+ rate typically overpays by $800–$2,000 per month.

What this means for your business

Flat-rate is designed for the smallest businesses. If you're beyond startup stage, you're likely subsidizing the aggregator's margins. The fee calculator shows you the exact delta.

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Pricing Models
One-line definition
A single fixed rate applied to every transaction regardless of card type. Simple to understand, but rarely the lowest cost at meaningful volume.
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