Interchange Plus Vs Flat Rate

Interchange Plus Vs Flat Rate. Interchangeplus rate markups typically consist of both a percentage markup and a pertransaction fee markup both of which are applied to all your transactions FlatRate This is like tiered pricing but without the tiers Instead all transactions cost the exact same percentage and transaction fee regardless of the wholesale cost.

Unlike flat rate pricing where the same 29% and 30 cents is charged regardless of the card being processed with Interchange Plus the rates for each card are transparent and publicly available with some cards costing less than 5.

Flat Rate Pricing Vs Interchange Plus Pricing

Merchants pay a consistent flat fee regardless of the wholesale processing rate plus a small fee per transaction So if your business has a merchant account with a 030% rate and a $014 transaction fee you pay the wholesale interchange fee plus 030% plus 14 cents In essence the processor passes the wholesale rate (with markup) to you.

Interchange Plus Pricing vs Flat Rate Pricing Helcim

Interchange plus vs flat rate pricing In comparison flat rate pricing is simpler and the interchange plus vs flat rate debate is one that businesses often have With flat rate pricing one fee is charged for all transactions regardless of what your customers use to pay.

Flat Rate vs. Interchange Plus Credit Card Processing

The variability is covered whether the interchange rates go higher or lower Some consider this “allin” pricing If someone says 3% it could mean you’re paying 25% in interchange and the rest to your processor Interchange Plus Pricing Interchange is a small fee that is paid by the merchant’s bank.