Interchange Plus Pricing
Interchange plus pricing separates processor markup from card network costs, providing business owners with a clearer understanding of what they are paying and why.
Interchange plus pricing is a processing model where the actual interchange fees charged by the card networks are passed through to the merchant, and the processor adds a separate markup.
Rather than combining all fees into a single rate, interchange plus pricing clearly separates card network costs from processor revenue.
This level of transparency is one reason many businesses prefer the model when evaluating long-term processing solutions.
Fees established by the card brands and issuing banks. These fees vary depending on card type and transaction method.
Charges imposed by the card networks for participating in their payment systems.
The amount charged by the processor above interchange and assessment costs.
Businesses evaluating payment processing often compare interchange plus pricing against flat-rate programs and cash discount solutions.
Each pricing model has advantages and disadvantages depending on business type, transaction volume, customer payment habits, and operational goals.
There is no universal solution that works best for every business. The most appropriate option depends on the specific circumstances of the merchant.
Businesses that value transparency and want a clear understanding of their processor markup often prefer interchange plus pricing.
Retail stores, restaurants, medical offices, contractors, professional service providers, and ecommerce businesses frequently evaluate interchange plus programs.
A statement review can help determine whether the model makes sense based on your current processing activity.
South Dakota Processing operates as an independent merchant services broker.
We help businesses compare processing options and understand the differences between interchange plus pricing, flat-rate programs, cash discount solutions, and other payment processing models.
Our goal is to help business owners make informed decisions based on facts, not sales presentations.
Upload a recent merchant statement and receive a detailed review of your current pricing structure.
We will help you understand your effective rate, processor markup, and available alternatives.