Interchange-Plus Pricing
A transparent pricing model that passes interchange at cost and adds a fixed processor markup, typically the lowest-cost structure for most merchants.
Interchange-plus (IC+) pricing separates your processing bill into two clearly labeled components: the interchange fee set by Visa or Mastercard, and the processor's markup. Both are shown on your statement. Nothing is bundled or hidden.
In practice your statement might show "Interchange + 0.25% + $0.10/transaction." The interchange component flows through at cost; the processor earns nothing on it. The 0.25% and $0.10 are the processor's margin, which is fully negotiable.
This contrasts sharply with tiered pricing, where a processor bundles interchange and markup into a single "qualified rate" and you have no way to verify what you're actually paying for the interchange portion. On IC+, you can verify every number against published Visa and Mastercard interchange tables.
IC+ is the standard pricing model used by large merchants, and is increasingly available to smaller businesses. Any merchant processing over $15,000/month should be on IC+ or negotiating toward it.
If you're on tiered or flat-rate pricing, switching to IC+ is typically the single highest-impact change you can make to your processing costs. FT5 clients average 30–60% lower markup after competitive bidding on IC+ terms.
See how your effective rate compares to what competitive IC+ pricing would cost you.
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