Flat-rate vs interchange-plus: which pricing model saves you more?
Flat-rate pricing is simple. Interchange-plus is transparent. Here's how to tell which one actually costs your business less.
Two pricing models dominate card processing: flat-rate and interchange-plus. The right one depends on your volume, average ticket size, and how much complexity you can tolerate.
Flat-rate pricing
You pay one blended rate for every transaction, for example 2.9% + 30¢. It's predictable and easy to forecast, which is why it's the default for newer and smaller businesses.
Interchange-plus pricing
You pay the card network's interchange cost plus a fixed markup. It's more transparent and usually cheaper at scale because you're not subsidising the processor's blended margin.
Which should you choose?
Low volume or just starting out: flat-rate keeps things simple.
Higher or growing volume: interchange-plus typically wins on cost.
Want predictability above all: a subscription/membership model can beat both.
Run your real numbers before switching. A fraction of a percent adds up fast at volume.
Processors mentioned
Developer-first payments infrastructure for internet businesses.
2.9% + $0.30
online rate
$0
monthly fee
2-day
payout
Transparent interchange-plus pricing with automatic volume discounts.
Interchange + 0.50% + $0.25
online rate
$0
monthly fee
Next day
payout
Subscription-style pricing that passes interchange straight through.
Interchange + $0.15
online rate
$99
monthly fee
Next day
payout
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