It’s the fairest model out there.
Interchange-plus pricing works by adding a constant, flat margin on top of Interchange. So typically, Interchange-plus pricing models will also be written in the two component format, with a percentage fee and per-transaction fee above Interchange. This allows merchant service providers to price their accounts fairly, because merchants who process at higher volumes will pay more fees, but only proportionately so. The same goes for smaller merchants. By offering a constant margin, smaller merchants are not penalized for processing minimal amounts.
What this also provides is transparency. We’re also committed to a fair pricing model that ensures our merchants know what to expect. With Interchange-plus pricing, you’ll get to see exactly how much money was paid to the card-issuing banks, how much went to the card associations, and how much went to Processing Solutions Inc.