How your processor prices transactions affects cost as much as “the rate” itself. Three common models show up on proposals: flat-rate, tiered, and interchange-plus.
Flat-rate One percentage (sometimes plus a per-item fee) for most cards. Simple to understand; can be expensive as volume and card mix grow.
Tiered Cards sorted into qualified / mid / non-qualified buckets. Easy for a sales deck; hard to audit because bucket rules are opaque.
Interchange-plus (cost-plus) Interchange and assessments pass through; the processor adds a markup. Clearest for comparison—if the statement actually shows the pass-through.
How to tell which you are on Read a statement. If you only see a blended rate with little interchange detail, you may be on flat or tiered. If you see interchange line items plus a markup, you are closer to interchange-plus.
Choosing Very small or new businesses sometimes prefer flat-rate for simplicity. As volume grows, interchange-plus usually gives the clearer cost view. Track effective rate either way—see <a href="/blog/how-to-read-your-merchant-statement">How to read your merchant statement</a> or send statements for a <a href="/free-statement-analysis.html">free analysis</a>.
Related: <a href="/pricing.html">Pricing education</a> · <a href="/compare.html">Compare</a>
Quick answers
What is interchange-plus pricing?
A pricing model where interchange and network assessments are passed through at cost, plus a fixed processor markup.
This article is general information, not legal or tax advice. Card brand rules and state laws change; confirm your setup before you launch a pricing program.