What is interchange plus pricing?
Interchange plus is a pricing model where merchants pay the actual interchange fee set by card schemes, plus additional fees charged by the processor or acquirer as a markup.
How does interchange plus pricing work?
Each transaction is priced based on its specific interchange category, and the processor adds a fixed markup. This creates a transparent breakdown of costs.
Why do merchants choose interchange plus?
It provides greater transparency and can be more cost effective for high volume merchants. It allows businesses to see exactly what portion of fees goes to each party.
What are the disadvantages of interchange plus?
It is more complex than flat rate pricing and requires careful analysis of statements to fully understand costs.
Who benefits most from interchange plus?
Larger merchants with higher transaction volumes often benefit most, as they can negotiate lower markups and optimise their payment mix.