Interchange Plus Pricing Can Provide Transparency and Significant Savings

Managing operational costs is crucial for business success. One significant expense is credit card processing fees. By understanding and implementing Interchange Plus pricing, businesses can achieve greater transparency and substantial cost savings.

What Is Interchange Plus Pricing?

Interchange Plus pricing is the true cost of each credit and debit card processed along with the Merchant Services Provider (MSP) costs. It includes Interchange Fees set by the Card Networks (Visa, Mastercard, Discover and American Express) paid to the cardholder's Issuing Bank. It also includes Card Brand Fees set by and paid to the Card Networks. Lastly, it includes the MSPs costs for their services.

Benefits of Interchange Plus Pricing

The benefits of Interchange Plus pricing are transparency and cost savings. Unlike tiered pricing models, Interchange Plus pricing provides a clear breakdown of fees, helping businesses understand and manage their processing costs effectively. Interchange Plus pricing tends to lower the overall costs compared to bundled pricing models, especially if a business processes a high volume of transactions. Interchange Management provides valuable insights on processed card transactions to assist businesses with lowering processing costs and increasing card security.

Flat Rate Pricing & Tiered Pricing vs. Interchange Plus Pricing

Flat-Rate pricing charges a fixed percentage and/or per transaction fee for all transactions. Even though this model is simple, it can result in overpaying for processing fees. Tiered pricing groups transactions into tiers (Qualified, Mid-Qualified, Non-Qualified, etc.) with varying rates. This model lacks transparency and unpredictable processing costs. Interchange Plus pricing stands out by providing more clarity and potential cost savings, which makes it a preferred choice for many businesses.

Understanding and adopting Interchange Plus pricing can lead to significant financial benefits for your business. It promotes transparency and potentially lowers processing costs. This pricing model empowers businesses to make informed decisions and allocate resources more effectively.

If you want your current Interchange Plus Pricing reviewed or are considering a switch to Interchange Plus Pricing, feel free to contact our team to receive a consultation with a Certified Payments Professional at info@closeknitconnections.com or call 1-888-244-4052.