What Is Interchange Plus? An Easy-to-Understand Guide

One of the most trusted pricing models for growing businesses is interchange plus pricing.

Why? Because it gives merchants a clearer view of costs and often a smarter path to controlling payment expenses over time.

In this guide, we’ll explain how interchange plus works, how it compares to other pricing models, and whether it may be the right fit for your business.

Designed to maximize your profits by simplifying costs, Interchange Plus is the most transparent pricing model in payment processing, and it’s made up of three parts:

Interchange Fees + Assessment Fees + Processor Markup = Interchange Plus

Interchange Fees
These are fees paid to the cardholder’s bank (also known as the issuing bank).

They can vary based on factors such as:

• debit vs credit card
• rewards or commercial cards
• in-person vs online checkout
• card-present vs manually keyed payments
• transaction category

Assessment Fees
Card brands such as Visa and Mastercard charge fees for using their networks. These fees typically change twice a year.

Discount Fees
Also known as the “markup,” is added on top of interchange fees by the payment processor to process these transactions. This markup is the “plus” in interchange plus pricing.

Interchange plus is often considered one of the most transparent pricing models because the card-related costs are separated from the processor markup.

That gives businesses clearer visibility into:

• what costs are market-driven
• what costs are processor-driven
• how pricing changes over time
• where savings opportunities may exist

For merchants focused on margin, transparency matters.

It can also make it easier to compare providers fairly instead of relying on headline rates alone.

Not all pricing models work the same way.

Interchange Plus

You pay the underlying interchange and assessment costs, plus a fixed markup.

Often preferred by businesses seeking transparency and scalable long-term costs.

Flat Rate Pricing

You pay one fixed rate on every transaction.

Simple to understand, but some merchants may pay more than necessary depending on card mix, average ticket size, and monthly volume.

If you are currently on a flat-rate plan, it may be worth using a pricing comparison calculator to estimate the difference.

Dual Pricing

Cash and card prices are displayed separately, helping offset processing costs while giving customers a clear payment choice.

Often attractive for in-person businesses focused on lowering fees without changing their core pricing model.

The best fit depends on how your business operates, how customers prefer to pay, and your long-term goals.

See how Quantum offers Interchange Plus, Flat Rate, and Dual Pricing solutions for different business needs.

Now that we understand what goes into Interchange Plus, calculating your Interchange Plus rate is a breeze.



Here is how the total interchange plus fee may look like for a real transaction for a $100 in-store sale, with example rates:

• Interchange Fee: 1.29% + $0.10
• Assessment Fee (Card Brand Fee): 0.24% + $0.02
• Quantum Markup: 0.15% + $0.05

Total Interchange Plus Cost
1.68% + $0.17 = $1.85

Now compare Interchange Plus to Flat Rate programs that other payment processors offer for the same in-store purchase of $100:

• Stripe Flat Rate: 2.9% + 30 cents (or $3.20)
• Square Flat Rate: 2.6% + 10 cents (or $2.70)

That’s an average of $1.10 saved or 37% in savings with our Interchange Plus (QPlus) program, compared to leading competitors. That’s the power of Interchange Plus!

Don’t have time to see if you are getting the most out of your current payment processor? Send us your statement for a FREE analysis and let our team of payment specialists show you the savings.

Because interchange costs are generally similar across processors, the biggest variable is usually the markup and overall relationship.

When comparing programs, review:

• percentage markup
• per-transaction fee
• monthly fees
• PCI or compliance charges
• contract flexibility
• funding speed
• support responsiveness
• reporting visibility
• chargeback guidance
• technology reliability

A low markup on paper does not always equal the best total value. The right provider should help you understand costs, not hide them.

Interchange plus can be a strong fit for businesses that process consistent volume, want pricing transparency, and need costs that scale more efficiently over time.

It is often worth evaluating for industries such as:


• Retail
• Food & Bev
• eCommerce
• B2B
• Service Businesses
• Software & Platforms

If your business processes steady monthly volume, interchange plus may create better long-term value than flat-rate pricing.

Interchange plus is not only about saving money. It is about understanding costs, spotting waste, and making better decisions over time.

Whether you're a small business owner or process thousands of transactions daily, Interchange Plus offers benefits like:

Full Transparency
With Interchange Plus, you see exactly what you’re paying for with every transaction. The costs are broken down into Interchange Fees, Assessment Fees, and Discount Fees—so you’ll never wonder where your money goes.

Cost Savings
Since Interchange Plus doesn’t bundle fees or include hidden costs, you only pay for what’s necessary, meaning your business can save money on every transaction.

Better Control
Interchange Plus gives you the flexibility to control your payment processing costs. With all fees listed separately, you can easily monitor and adjust to minimize expenses.

At Quantum ePay, we help businesses compare pricing models using real statements, transaction data, and operating needs.

For many merchants, interchange plus offers a smarter path to transparency and lower long-term costs. For others, dual pricing or another structure may be the better fit.

The goal is not to force one model. It is to help you choose the one that supports your business best.

If you would like a clearer picture of your current costs, talk with a payments expert or request a free statement review.