What is the difference between interchange-plus and interchange-pass-through pricing?

They refer to the same model under different names. Interchange is passed through to you at cost, plus a fixed processor markup. Some processors call it cost-plus. The critical question is whether you can see the interchange cost and the processor fee as separate line items.

Will I pay more for premium rewards cards with interchange-plus?

Yes. Those cards carry higher interchange, and with interchange-plus that higher cost is visible on your statement. But you were already paying it under tiered pricing; the processor was absorbing it into a bundle and marking it up further. With interchange-plus, you pay the actual card-network cost, not a tiered estimate.

Do I need new hardware to switch to interchange-plus pricing?

Usually not. Most modern terminals and POS systems support interchange-plus rate structures, including Clover, Dejavoo, Square, and processing through Authorize.net or NMI. We confirm compatibility during the rate review.

How long does the free rate analysis take?

Typically 24 to 48 hours from the time we receive your current processing statement. We send you a side-by-side comparison of your current cost versus what an interchange-plus arrangement would look like based on your actual transaction history. There is no obligation to switch.

Transparent Card Processing

See Exactly What You're Paying for Card Processing

Interchange-plus pricing gives you a clear breakdown of every fee: no bundled rates, no hidden markups, and no surprises on your monthly statement.

Most businesses on tiered or flat-rate pricing have no idea what portion of their processing bill is the actual card cost versus their processor's markup. Interchange-plus separates those two numbers. That transparency lets you hold your processor accountable and make an accurate, apples-to-apples comparison when you shop.

PayPoint Systems offers interchange-plus pricing for qualified businesses. If you process a meaningful volume of card transactions each month, this pricing model typically delivers a lower effective rate than tiered pricing, plus a statement you can actually read.

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Why Merchants Choose Transparent Pricing

Transparent, itemized statements. Every fee is shown as its own line item.
Midwest-based support. A local team that knows your business.
No long-term contracts required. Agreements built around the relationship.
Local rep, direct line. Real human help when you need it.

What "Interchange-Plus" Actually Means

When you accept a card payment, two separate costs are involved.

Interchange is the base fee set by Visa, Mastercard, and the card-issuing banks. These rates vary by card type. A basic debit card costs less to process than a rewards Visa or a corporate purchasing card. Interchange rates are published publicly and are the same regardless of which processor you use.

The "plus" is your processor's markup: the flat fee or percentage they charge on top of interchange for handling the transaction.

With interchange-plus pricing, your monthly statement shows both numbers separately. You can see exactly what Visa charged, and exactly what your processor charged. That is the whole model.

Why it matters to merchants: with tiered or bundled pricing, the processor decides which bucket each transaction falls into, and you have no visibility into the actual interchange cost. In practice, this approach often means you pay a higher effective rate because the processor blends their margin into an opaque bundle. Interchange-plus removes that opacity.

Interchange-Plus vs. Tiered vs. Flat Rate

Pricing Model	How It Works	Statement Clarity	Who It Favors
Interchange-Plus	Interchange cost plus a fixed processor markup, shown separately	High. You see every line item	Higher-volume merchants, B2B, restaurants, retail
Tiered (Bundled)	Processor groups transactions into 2 to 4 rate buckets	Low. Actual card costs are hidden	Processors, who can widen margins invisibly
Flat Rate	Same rate for every transaction regardless of card type	Medium. Simple to understand, but not efficient	Very low-volume or startup merchants
Subscription/Membership	Monthly fee plus true interchange cost	High. Similar to interchange-plus	High-volume businesses running many transactions

The hidden cost of tiered pricing: when a processor moves a qualified card into a mid-qualified or non-qualified tier, you pay a significantly higher rate without a clear explanation why. Interchange-plus eliminates tier downgrades entirely. Every transaction settles at its actual interchange category, plus your agreed markup.

What Your Statement Will Look Like

An interchange-plus statement has more line items than a tiered statement, and that is a feature, not a bug. Here is what to look for.

Interchange Fees. The sum of all base costs for transactions processed during the period, broken down by card category such as Visa Credit, Mastercard Debit, and Visa Rewards. These numbers are non-negotiable; they are set by the card networks.

Assessment Fees and Network Fees. Small percentage fees charged by Visa and Mastercard on gross sales volume. Also non-negotiable and applied uniformly across all processors.

Processor Markup. Your agreed-upon rate and per-transaction fee paid to PayPoint for processing services. This is the only line item you negotiated. On a good interchange-plus arrangement, this number is small and fixed.

Monthly and Service Fees. Statement fee, gateway fee, PCI compliance fee if applicable, and equipment lease if any. These should be explicitly itemized.

Pro tip: compare two statements by looking at the total of interchange plus assessments (non-negotiable) versus the processor markup. If the markup portion is large, or if you cannot find it clearly labeled, that is a sign of a tiered arrangement disguised as interchange-plus.

Is Interchange-Plus Pricing Right for Your Business?

Interchange-plus tends to deliver the most value for businesses where the card mix and volume make per-card-type differences meaningful.

Best fit:

Restaurants and food service. High transaction volume and frequent debit card use. Debit interchange rates are significantly lower than credit, and interchange-plus passes that difference through directly.
Retail merchants. A mix of card types across a large transaction count. Interchange-plus rewards efficient card acceptance rather than penalizing it.
B2B and wholesale. Commercial and corporate purchasing cards carry different interchange rates than consumer cards. With interchange-plus and proper Level 2 and Level 3 data submission, businesses may qualify for lower commercial interchange categories.
Professional offices. Larger average tickets where interchange-plus provides itemized clarity on each significant transaction.
Any business currently on tiered pricing. If you have never had an itemized processing statement, a free rate comparison will show you exactly what you are paying and what a transparent structure would look like.

Not the best fit:

Very low-volume merchants where the simplicity of flat-rate may outweigh the benefit of an itemized statement.
Businesses that need a single all-in monthly number for bookkeeping and prefer predictability over optimization.

If you are not sure which model fits your business, the free rate analysis is the fastest way to find out. It is free, there is no obligation, and we will show you both options side by side.

What You Get When You Process With PayPoint

Offering interchange-plus pricing is not rare. Offering it with honest, readable statements and a local rep who explains what they mean is.

PayPoint Systems is a Midwest-based merchant services provider. We are not the card processor. The setups we support range from a single terminal to multi-location retail operations.

What that means for you practically:

Transparent pricing from day one. Your rate is disclosed before you sign. No surprise tier bumps, no buried assessments.
Statements you can read. If you have questions about a line item, your PayPoint rep can walk through it with you.
Compatible with your existing setup. Interchange-plus pricing works with most compatible terminals and POS systems, including Clover, Dejavoo, Authorize.net, NMI, and others.
No long-term lock-in. Merchant services agreements through PayPoint are designed around the relationship, not a penalty clause.

Interchange-Plus Pricing: Common Questions

Not always. It depends on your volume and card mix. Interchange-plus tends to deliver the best value for businesses with meaningful monthly card volume, where per-card-type differences add up. At very low volume, the simplicity of flat rate may outweigh the benefit of itemized pricing. A free rate analysis will show you the actual comparison based on your real numbers. Call us or submit the form below.

Look at your monthly statement. If you see a consolidated line for qualified or non-qualified transactions without a breakdown of interchange categories, you likely have tiered pricing, or a hybrid that limits your visibility. A true interchange-plus statement shows the interchange category for each transaction type and your processor markup separately. Send us a statement and we will help you read it.

See What You're Actually Paying, and What You Could Be Paying Instead

The rate analysis is free. Send us your most recent processing statement and we will break it down: what is interchange, what is your processor's markup, and what a transparent interchange-plus arrangement would look like for your business.

Get My Free Rate Analysis Call (219) 699-8306

PayPoint Systems is a registered ISO of Payroc LLC. Payroc LLC is a registered ISO of Wells Fargo Bank, N.A., Concord, CA; Merrick Bank, South Jordan, UT; and Esquire Bank, Garden City, NY.