What Is Interchange-Plus?
There are a few pricing models when merchants choose non-Cash Discount. Between tiered, bundled, and Interchange-Plus, we choose Interchange-Plus to get you the best card payment fees.
A transaction consists of two parts to Interchange-Plus: Interchange Rates and our margin. Interchange-Plus, abbreviated IC-PLUS, is also called Cost Plus Margin, Cost Plus, or Interchange Passthrough. We pass this cost to you, plus a margin.
Interchange Plus Margin Formula
1. Interchange Fees
Hundreds of Interchange Fees are set by the banks (Visa & MasterCard). Our bank paid this wholesale cost to transfer fund to consumer’s credit card’s bank. These fees cover their operating cost.
As an example, for MasterCard credit transaction, the Interchange Rate is 1.58% + 10¢
2. Plus Our Margin
We add an extremely low margin of 0.20% + 10 cents on top of Interchange Fees. All together we have a formula: Interchange Plus Margin or just Cost Plus.
Our MasterCard transaction is now: 1.68% + 20 cents.
3. For Examples
Now apply that formula to a $10 ticket.
$10.00 * 1.68% + 20¢ = 0.37¢ in fees.
Now apply that formula to a $100 ticket.
$100.00 * 1.68% + 20¢ = 1.88¢ in fee.