Interchange plus pricing is a transparent and widely preferred credit card processing model that separates the actual cost of processing a transaction from the processor’s markup. At its core, the “interchange” is the wholesale rate set by the card networks (like Visa, Mastercard, or Discover) and paid to the card-issuing banks.
This fee varies depending on factors such as the type of card used, the transaction method (in-person, online, keyed-in), and the merchant’s industry. The “plus” refers to the fixed markup charged by your payment processor, which can be either a small percentage of the transaction, a flat per-transaction fee, or a combination of both.
Unlike flat-rate or tiered pricing models, where fees are bundled into one opaque rate, interchange plus gives businesses complete visibility into the true cost of each transaction, making it easier to identify exactly how much goes to the card networks versus how much is profit for the processor.
While it can look more complex on paper because of itemized statements, many merchants find this model more cost-effective, especially for businesses with higher sales volumes or those accepting a wide variety of card types.
It also builds trust, since the processor’s markup remains consistent regardless of the interchange rate fluctuations, allowing merchants to benefit from lower interchange rates when available.
Interchange plus pricing breaks down credit card processing fees into two parts: the interchange fee set by card networks and the processor’s markup. This model ensures merchants know exactly what they’re paying for and where their money is going.
Here’s how it works:
When a customer pays with a credit or debit card, the transaction is routed through the card network (Visa, Mastercard, etc.) to the issuing bank for authorization.
The card-issuing bank charges an interchange fee, which covers the risk of the transaction and handling costs. This fee varies depending on the card type, industry, and transaction method.
On top of the interchange fee, your payment processor applies a transparent markup, usually a small fixed percentage and/or a flat per-transaction fee. This “plus” remains consistent regardless of the card or network.
The merchant pays the interchange fee plus the processor’s markup. Unlike other pricing models, the costs are itemized on your statement, giving you clear visibility into how much goes to the card network versus the processor.
After fees are deducted, the remaining transaction amount is deposited into the merchant’s bank account, typically within one to two business days.
While interchange plus pricing may seem harder to predict because the fee varies with each transaction, it consistently proves to be the most cost-effective option for businesses of all sizes. Unlike flat-rate processors that charge the same percentage regardless of card type, interchange plus allows companies to take advantage of lower interchange fees when applicable. This transparency often translates into significant savings over time.
Below are the average savings by industry in 2025 when using Helcim’s interchange plus pricing compared to traditional flat-rate credit card processors:
Industries like enterprise, gas stations, and government experience the highest savings with interchange plus pricing, often exceeding 40%, while nearly every sector benefits from lower, more transparent fees compared to flat-rate models.
Calculating the interchange plus rate involves adding together two components: the interchange fee set by the card networks and the processor’s markup (the “plus”). Interchange fees vary based on card type (debit, credit, rewards, corporate), transaction method (swiped, chip, online, keyed), and industry. The processor’s markup, however, is fixed and clearly stated in your agreement.
To calculate your interchange plus rate for a given transaction, follow these steps:
Check the card network’s published interchange tables (Visa, Mastercard, etc.) or your merchant statement to find the interchange fee that applies to the card used. This is usually expressed as a percentage of the transaction amount plus a per-transaction fee (e.g., 1.51% + $0.10).
Take the markup from your payment processor contract (for example, 0.30% + $0.05 per transaction) and add it to the interchange fee.
Your effective processing cost is the interchange fee + processor markup. For instance, if the interchange fee is 1.51% + $0.10 and your processor’s markup is 0.30% + $0.05, the total interchange plus rate would be 1.81% + $0.15.
Multiply the percentage portion by the transaction total, then add the flat fees. For a $100 transaction in the above example:
Interchange Fee is the charge a card-issuing bank imposes on a merchant’s bank for each card transaction, covering security, fraud prevention, and services.
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