What Is Interchange-Plus Pricing?
Interchange-plus pricing is a credit card processing pricing model where you pay two separate costs on every transaction: the interchange fee (set by Visa and Mastercard) plus a fixed markup from your payment processor. It is the most transparent pricing model available because you can see exactly what goes to the card networks and what goes to your processor.
For example, if a customer pays with a Visa rewards card that has an interchange rate of 1.65% + $0.10, and your processor charges a markup of 0.30% + $0.10, your total cost for that transaction is 1.95% + $0.20.
The key insight is that interchange rates vary significantly by card type. A debit card might cost 0.05% + $0.21, while a corporate rewards card might cost 2.65% + $0.10. Under interchange-plus pricing, you pay the actual cost for each card type. Under flat-rate pricing (like Stripe's 2.9% + $0.30), you pay the same rate regardless — overpaying dramatically on debit cards and lower-cost card types.
How Interchange Rates Work
Interchange rates are set by Visa and Mastercard and published twice a year (April and October). There are hundreds of different interchange categories based on:
- Card type: Debit, credit, rewards, corporate, prepaid
- Transaction method: Swiped/tapped (card-present) vs keyed/online (card-not-present)
- Business type: Retail, restaurant, supermarket, ecommerce, etc.
- Transaction size: Some categories have caps or different tiers
The interchange fee goes to the card-issuing bank (the bank that gave the customer their card), not to your processor. Your processor has no control over interchange rates — they simply pass them through and add their markup.
Interchange-Plus vs Flat-Rate Pricing
The biggest savings come from debit card transactions. Under flat-rate pricing, a $100 debit card transaction costs you $2.90 (at Stripe's 2.9% + $0.30). Under interchange-plus, that same transaction costs approximately $0.51 (debit interchange of ~0.05% + $0.21, plus processor markup of ~0.30% + $0.10). That is an 82% savings on a single debit transaction.
For businesses where debit cards make up 40-60% of transactions (common for restaurants, retail, and service businesses), the cumulative savings are substantial.
What Is a Good Interchange-Plus Rate?
A good interchange-plus markup from your processor depends on your business type and monthly volume:
- Low-risk retail/restaurant ($25K+/month): 0.15-0.30% + $0.05-$0.10
- eCommerce ($25K+/month): 0.25-0.40% + $0.10-$0.15
- Small business ($5-25K/month): 0.30-0.50% + $0.10-$0.15
- High-risk business: 0.50-1.50% + $0.10-$0.25
The markup is the only part you negotiate — interchange fees are non-negotiable and set by the card networks. When comparing processors, focus on the markup, not the "effective rate" which blends interchange and markup together.
Interchange-Plus Pricing Example
Here is a real-world example comparing interchange-plus vs flat-rate for a restaurant processing $50,000/month:
Transaction mix: 50% debit cards, 35% regular credit, 15% rewards credit
Flat rate (2.6% + $0.10):
- Total monthly cost: ~$1,350
Interchange-plus (markup of 0.25% + $0.08):
- Debit transactions: ~$225
- Regular credit: ~$560
- Rewards credit: ~$300
- Total monthly cost: ~$1,085
Monthly savings: ~$265 | Annual savings: ~$3,180
The savings increase with volume. A restaurant processing $100,000/month saves $500-$600 monthly, or $6,000-$7,200 annually.
Interchange-Plus vs Tiered Pricing
Tiered pricing (qualified, mid-qualified, non-qualified) is the least transparent model. Your processor groups transactions into tiers and sets rates for each tier — but the grouping criteria are opaque and often change without notice. Most transactions end up in the most expensive "non-qualified" tier.
Interchange-plus is strictly better than tiered pricing for businesses of all sizes. If your current processor uses tiered pricing, switching to interchange-plus will almost certainly save money.
How to Switch to Interchange-Plus
1. Get your current processing statements — request 3 months of statements from your current processor 2. Request an interchange-plus quote — contact Unison Payment for a free rate comparison using your actual transaction data 3. Compare effective rates — we calculate your total cost under both models so you can see exact savings 4. Switch with zero downtime — we handle the transition with no gap in processing capability
Unison Payment Solutions provides interchange-plus pricing for all business types including restaurants, retail, eCommerce, and high-risk industries. No monthly fees, no contracts, no early termination fees.