Flat-rate pricing charges one percentage (often plus a fixed fee) on every card, which is simple and predictable. Interchange-plus passes the actual…
THE SHORT ANSWER
Flat-rate pricing charges one percentage (often plus a fixed fee) on every card, which is simple and predictable. Interchange-plus passes the actual interchange and network fees through at cost and adds a fixed, disclosed markup. For many businesses with steady volume, interchange-plus costs less and is more transparent; flat-rate can suit very small or new businesses that value simplicity. The only way to know for you is to price both on your own transactions.
Updated · Waytrix Pay editorial team
TOPIC
You pay the same rate whether a customer uses a basic debit card or a premium rewards card. The provider keeps the difference between that rate and the real interchange. It is easy to understand, and common with payment facilitators such as all-in-one POS and online checkout platforms.
Your statement shows the interchange for each card type at cost, plus the processor’s markup, for example a small percentage and a per-transaction fee. When customers use low-cost cards such as regulated debit cards, you keep the savings.
The right model depends on your volume, average ticket, and card mix:
Enter one month of real card sales and transaction counts into the merchant fee calculator under each model. Compare the total monthly cost and effective rate, not the headline percentage.
Rates and rules change. Check the current versions from the card networks and regulators:
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