GLOSSARY
What is interchange-plus pricing?
Interchange-plus pricing is a fee model where the merchant pays the card network’s interchange and assessment fees at cost, plus a fixed markup from the processor.
How it works
Interchange varies by card type, so the total changes from one transaction to the next, but the processor’s own margin stays visible and fixed.
Why it matters for high-risk brands
It is the most transparent way to compare processors, because you can see exactly what the processor adds on top of network costs.
FAQ
Interchange-plus pricing: questions
Is interchange-plus cheaper than a flat rate?
Often at higher volume, because you pay the real cost of each card instead of a blended rate. At low volume a flat rate can be simpler.
Who sets interchange?
The card networks set interchange rates; the fee goes to the bank that issued the card.