Merchant Resources
What Is Interchange-Plus Pricing?
Understand interchange-plus pricing, why many businesses prefer it, and how it compares with flat-rate or tiered pricing.
Simple definition
Interchange-plus is a pricing structure where the underlying card cost is separated from the provider markup. That makes it easier to understand what part of the total cost comes from the card network side and what part comes from the provider relationship.
Interchange vs assessments vs markup
At a practical level, the merchant sees three layers: the underlying card cost, the network-related assessments, and the provider markup. What matters most in the real conversation is whether the full structure is understandable and whether the markup and extra fees make sense.
Why merchants like transparency
Business owners usually ask about interchange-plus because they want cleaner comparisons, fewer surprises, and a pricing structure that is easier to explain without marketing fog.
When interchange-plus tends to make more sense
It often becomes more relevant when a business has enough volume, enough complexity, or enough pricing frustration that transparency starts to matter more than simplicity alone.
When you still need to compare support and system fit
A cleaner pricing label does not automatically make the relationship better. Support, reporting, operational fit, and the broader system still matter.
FAQ
Is interchange-plus always cheaper?
No. It is often discussed as more transparent, but total cost and fit still depend on the business.
Is Square interchange-plus?
Not in the way most businesses mean when they ask the question. Square is usually discussed in flat-rate terms.
Can a statement review show whether this would help?
Yes. A recent statement is the cleanest starting point for that comparison.