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Cost-Plus Pricing

What is Cost-Plus Pricing?

The pricing model that we use is called Cost-Plus Pricing, also known as Interchange Plus Pricing. It works by passing through your credit card transactions at their respective interchange rates with a small, flat markup added.

Interchange rates are the wholesale processing rates set by Visa, MasterCard, and Discover, and they differ according to card type and transaction type. i.e., swiped, key-entered, or online

The word "Plus" refers to the payment processor's markup that is applied to each transaction. This markup is typically expressed as basis points.

For instance, a business paying Interchange Plus .30 is paying the interchange rate for each transaction plus .30 basis points or 0.30%.

Example: 1.51% + 0.30 basis points = a total discount rate of 1.81%

Cost-Plus Pricing is the most transparent and cost-effective pricing model for merchant accounts.

To view the current interchange rates from Visa, MasterCard, and Discover — Click Here

Contact us to learn more