What is Interchange Plus Pricing?
Interchange plus pricing is a billing method used by Helcim to give you complete transparency and greater savings. When you process a transaction we pass the interchange and card-network costs directly on to you, giving you access to the true wholesale rates. For our service, we charge you a set margin on top of the transaction, such as 0.30% + 8¢. The more you process, the more we reduce our margin.
As an example, if a transaction had an interchange and card-brand cost of 1.50%, you would be billed 1.50% for the transaction cost and 0.30% + 8¢ for Helcim's service. Your total cost on that transaction would equal 1.80% + 8¢.
Visa USA Interchange Rates
Mastercard USA Interchange Rates loading="lazy" width="200px" height="200px"
American Express USA Opt-Blue Wholesale Discount Rates
Discover USA Interchange Rates
US PIN Debit Interchange Rates
Savings & Transparency.
Many old-school processors use "tiered" pricing, where you are charged a base "qualified" rate and then charged a "non-qualified" fee for most transactions. This results in rates that are much higher than needed.
By passing the cost directly to you and only charging for a single markup, interchange plus pricing gives you significant savings while creating a very transparent arrangement with your processor - you know our cost and margin!
Comparing Pricing Methods.
There are may ways that payment companies charge merchants for accepting credit and debit card payments. Below is a breakdown of the most common pricing methods, and how they compare to our interchange plus pricing.
About Interchange Costs
Interchange fees are set by Visa and Mastercard and paid to the customer's bank (issuing bank). This is the grey in the charts. These will vary depending on the type of credit card (consumer vs. premium) and how it is entered (in-person vs. manually keyed).
Processors and merchants of all sizes are bound by the same Interchange. As you go through the various pricing methods below, pay attention to the processor's profit margin shown as the color above the grey bars. Notice how it changes between the various pricing methods.
Interchange Plus Pricing
Interchange plus pricing is still uncommon because it typically has the lowest margins for a processor. The processor passes the true Visa and Mastercard costs on to the merchant and charges only a single markup (%) on top of the processing volume.
We offer all of our merchants interchange plus pricing as it creates a very transparent arrangement between us and our clients.
Flat Rate Pricing
Flat rate pricing typically has a flat percentage and a per transaction fee, regardless of the types of credit cards used or how they are entered. This is quickly becoming the most common pricing method for card processing as it is easy to understand, but can be quite costly to merchants.
Tiered pricing usually consists of having a lower "qualified" rate for certain transactions and higher "mid" and "non-qualified" rates for others. This is one of the most common pricing method with old-school processors, as they can entice merchants with a low "qualified" rate. Unfortunately they don't spend much time explaining the rest of their costly mid and non-qualified tiers.
Interchange Differential is another common pricing method among old-school processors. Similar to tiered pricing, "qualified" and "non-qualified" fees are charged, but merchants are also charged "interchange differential fees" on top of most cards. This results in merchants paying multiple fees on the same transaction, essentially being double billed.
Lower Rates, No Monthly Fees
- No Contracts
- Volume Discounts
- Deposits in 1-2 Business Days
- No Hidden Fees Whatsoever
Discover Our In-Depth Payment Solutions.
- In-Person Chip, Tap & PIN
- Card Vault & Tokenization
- Interchange Plus Pricing
- International Processing
- Virtual Terminal
- USD Processing
- US PIN Debit Acceptance
- Apps for Mobile & Desktop
- Built-In PCI-DSS Compliance
- Payment Gateway & Dev APIs
- 1-2 Business Day Deposits
- Hosted Payment Tools
- Easy Signup & Setup