Interchange Plus – The Best Pricing for Merchants

The pricing you will want to look for when choosing a merchant services provider is called Interchange Plus. Interchange Plus or IC + is the cost of money (the interchange) and the profit on the account (the plus). The first question I get asked is “how can I only pay Interchange?” Simple answer. You can’t! Interchange is the cost of money for the processor. No one works for free. If they did then they wouldn’t be in business and the industry would not exist. The plus on the interchange is the processors margin. Your goal as a consumer is to get as close to interchange as possible WITHOUT getting screwed over in another way.

Interchange Plus
As the interchange changes the + on the account stays constant.

Many people tell me that they are on interchange plus very low basis points (10-20 points). I’ll take a look at their statements and see that that’s not possible because their blended rate is way too high and their volume is too low. I find out why they think that. Yes they are at Interchange and 15 technically but they are either paying high fees or a lot in hidden fees that don’t exist in our industry. We call them bullshit fees. You would never know the difference because you’re not a professional in our industry. If it sounds too good to be true, then chances are it is! Do not get bate fished. A good interchange rate is determined on your monthly volume!

A good processor will price you based on your volume. Look at my chart to see what range you should fall in!

Average Monthly Volume Interchange Rate
$5,000 – $150,000 50 – 100 points
$150,000 – $300,000 25 – 50 points
$300,000 – $500,000 15 – 25 points
$500,000 + 5 – 15 points

This chart does not apply to high risk merchants!

Interchange Plus Calculator
Calculating the total cost to you, the merchant!

If you think that you are paying too much for your merchant fees, then please contact us and we are more than happy to take a look for you.