What Is Interchange Plus Pricing?
As a pricing structure, interchange plus pricing separates the different processing costs, keeping up with the demand for transparent reporting, no hidden fees, and lower processing costs. Further, using basis points for this pricing method allows for more optimized expenses and helps businesses better control these costs.
All processors must pay the same interchange fees which are fixed across the industry. These fixed rates are paid to the card issuing bank. Processors then take this fixed rate and add their own pricing on top. For example, the Mastercard credit card processing interchange fee for a swiped consumer card is 1.58% + $0.10 and comes with an authorization fee. The $0.10 is a transaction fee from the bank or credit card provider. Measured in basis points, this would be 158 BPS. If you expect to take $5,000 by swiped Mastercard consumer cards, this will yield a charge of $79 (.0158 * $5,000).
To learn more about interchange plus pricing, check out our blog.
How To Determine If You’ve Gotten A Good Credit Card Rate?
A key indicator of working with a trusted credit card processor is their transparency in policies and interchange fees. Processors who provide fair interchange fees using basis points and thorough education about how these fees and charges are determined—without using impossibly small print and dry jargon—would make a solid and reliable partner for your payment processing needs.
We can navigate the financial payment industry while studying trends and consumer demand; that comes from our time in the market serving various types of businesses.
Durango Merchant Services was founded in 1997. We’re the oldest, longest-lasting, best-reviewed, small-town credit card processor who understands the need for superior customer service and unbeatable prices. Building out-of-the-box creative money-savings strategies are how we became the leader in hard-to-acquire and high-risk credit card processing. With our deep knowledge and expertise, you get:
- More payment solutions
- More integrations
- A more extensive network
- A reputation you can trust
There’s no call center or automated system in these halls. We answer the phone and emails during business hours and return messages promptly when we miss them. That’s how we’ve survived in such a competitive and volatile industry for over two decades.
Get Answers From The Experts
- Am I paying too much for credit card processing?
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- What’s with all the chargebacks?
- My bank has labeled me “high-risk”; can I still get a low processing rate?
- What do I need to do if I want to process checks?
Don’t let these questions fester into uncertainty. We can help. Call 1-866-4152636 to get in touch with one of our team members today.