Your Interchange Fee Questions Answered
Here are some common questions related to the interchange fee that can help you better understand the payment processing fees your business is paying.
Understanding the Different Payment Processing Pricing Structures
One of the most important considerations when selecting a payment processor for your business is which pricing structure they offer, or simply, how they bill you for your processing.
Interchange Plus Pricing Explained
In interchange plus pricing, the merchant passes on the fluctuating interchange rates to the merchant, while their margin fee will be charged on top as a consistent, set rate for each transaction.
A Quick Overview of Interchange
When you first research finding a payment processor for your business, you’re going to hear the term “interchange” frequently. This is a term that you likely have not heard before and may not be familiar with. So, what exactly is interchange? Interchange refers to the interchange fee that is charged by the card brand (Visa, MasterCard, Discover, or Amex) for processing a credit card transaction.
Choosing a Payment Processor
Interchange Plus Pricing vs Flat Rate Pricing
The payments industry is full of different credit card processing price structures, making it difficult for business owners to immediately tell which price structure will be best for their business.