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#FLAT RATE IT PLUS#

This type of pricing model streamlines charges, making them easier to understand, but often costs more than other models. The interchange fee is included in the flat rate to simplify the pricing model. Typically, what you pay for flat rate credit card processing is about 2.75% to 2.90% or 20 to 30 cents per transaction. With the interchange fee, assessment, and markup built into flat-rate credit card processing, you may wonder exactly what you’ll be charged for it. Average Flate Fee Credit Card Processing Rates The extra you pay for flat rate merchant processing is for a seamless transaction–one that’s simpler to set up and implement. When you break down the costs for interchange plus, you will pay about $700 less per month per 100,000 transactions–a savings of about $8,400 per year. But if you process a high volume of cards, you may be better off paying per transaction than a lump sum. It may seem like you’ll pay more for an interchange-plus model than flat-rate processing. These rates depend on the credit card provider. Additionally, a small percentage is charged on top of the interchange fee–normally just under half a percent, or about 20 cents per transaction.

This is why flat-rate credit card processing has become so popular.įor instance, the interchange fee for a debit card is usually around 0.05% or 22 cents per transaction, while it hovers at around 2.00% or 10 cents per transaction for a credit card. However, the fixed rate for the interchange fee is different for different card brands and types.

#FLAT RATE IT PLUS#

There are two parts of an interchange plus model: The credit card networks set the “interchange,” and the markup fee your processor charges is the “plus.”Īny flat rate pricing model includes the interchange charges into the average percentage charge of 2.75% to 2.90%. Each time a card is swiped or inserted into a terminal, the credit card company charges an interchange fee. It’s how credit card issuers make most of their money. Interchange is the rate assessed for every credit card transaction. Let’s look at the basic Interchange plus model of pricing.

A third fee, known as a markup, is paid to the credit card processor.

An assessment fee is paid to a card’s brand, such as MasterCard or Visa.

An interchange fee is set by and paid to the bank that issued the credit card.

To better understand flat-rate credit card processing, you must know certain things about a credit card transaction. This is opposed to Interchange Plus pricing, where you pay a different fee per transaction.

Also known as flat-rate merchant processing, this pricing model charges a fixed percentage, or rate, based on how many credit cards you process. Flat rate credit card processing has become increasingly popular in today’s credit card-driven market.