Interchange-plus, flat-rate & tiered pricing

Interchange-plus

In an interchange-plus arrangement, an identifiable interchange component and other specified card-system costs are passed through, alongside disclosed processor markup. Transparency depends on the details of the schedule and statement—not simply the name.

Confirm which network assessments, per-transaction charges, gateway fees, and miscellaneous charges are included, excluded, or separately billed.

Flat-rate

Flat-rate arrangements commonly simplify merchant pricing by applying a published percentage and/or fixed amount to defined transaction categories. Actual pricing can still differ between in-person, keyed, online, international, or specialized transaction types.

A simple fee structure can be valuable for operational predictability. Whether it is competitive depends on volume, ticket size, card mix, and the provider's complete terms.

Tiered or bundled

Tiered structures group transactions under provider-defined categories, often labeled qualified, mid-qualified, or non-qualified. A merchant should ask what causes a transaction to enter each tier and how the tier differs from the underlying interchange classification.

A provider may present one attractive qualified rate while a meaningful share of transactions follows other pricing tiers. Look at the complete statement and documented rules.

Compare costs without pretending the mix stays constant

Compare the same merchant profile, transaction counts, tender mix, and payment channels across quotes. Explicitly include recurring charges, equipment or software costs, refunds, disputes, and implementation expenses.

• Get each pricing schedule in writing.
• Identify assumptions behind rate illustrations.
• Ask how fees appear on statements.
• Check volume, channel, and card-type sensitivity.
• Compare operational fit before deciding.