Fees
Interchange-plus vs. flat-rate pricing, explained
Two ways processors charge, and how to tell which one is costing you more.
Hermosa Payments team6 min read
Every card payment carries a base cost set by the card networks and banks, called interchange. What changes from processor to processor is how they add their margin on top.
Flat-rate pricing
You pay the same percentage on every sale, no matter the card. It’s simple to understand, but you pay the same markup on cheap debit cards as on premium rewards cards.
Interchange-plus pricing
You pay the actual interchange cost plus a fixed markup. Statements are longer, but the markup is visible and you benefit when customers use lower-cost cards.
Which is right for you
- Low monthly volume or very small tickets: flat-rate can be simpler.
- Steady volume with lots of debit cards: interchange-plus usually costs less.
- Not sure: compare your effective rate under both on real statements.
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