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