Bundled Rate

What a bundled rate is

A bundled rate combines the three layers of card-processing cost into one price: interchange paid to the cardholder’s bank, network fees paid to card brands, and your processor’s markup. Instead of seeing those costs separately, you see a combined rate applied to your transactions.

The price may be a percentage, or a percentage plus a fixed amount per transaction. A contract can apply one rate across card types or set different rates for different transaction types. The schedule in your agreement determines which applies.

A simple rate is easy to quote; the total bill is what tells you whether it is a good deal.

How the price works

When a customer pays, interchange and network fees still depend on the card and transaction. Your processor charges the bundled price, then pays or accounts for those underlying costs. The difference is not a separately listed markup, so your statement does not show how much the processor keeps on each sale.

For example, an illustrative bundled price of 2.9% plus $0.30 costs $3.20 on a $100 sale. That example shows how the price is calculated, not a standard or recommended rate. To compare offers, include monthly, per-transaction, PCI, and other contract fees too.

Illustrative cost on a $100 sale

Illustrative calculation only. Your contract’s rates and additional fees determine your actual cost.

What it means for your costs

The main tradeoff is simplicity for visibility. A bundled price gives you a straightforward rate to forecast, but it does not show whether your processor’s markup is competitive or which card types are driving costs.

That matters when your card mix changes. Regulated debit interchange is capped at 21 cents plus 0.05% of the transaction and a 1-cent fraud-prevention adjustment for covered cards, as of 2026. If your bundled price does not change when your underlying costs fall, you do not see that reduction as a separate pass-through saving.

The amount you can negotiate is the processor markup, not interchange or network fees. Compare the total amount paid under a bundled rate with an interchange-plus quote using the same transactions and additional fees. A lower headline rate alone does not prove a lower bill.

Where bundled pricing gets hard to compare

A single advertised percentage does not tell you the full price if the contract also lists a per-transaction charge, monthly minimum, or separate service fees. Those charges raise your effective rate, especially when you process many small sales.

Bundled pricing also makes statements less useful for tracing costs. If your statement shows total fees and sales but does not itemize interchange, network fees, and markup, you cannot identify each layer from that summary alone. Compare the statement’s total fees with total card volume, then review the agreement for every rate and fixed fee.

What you can actually change

1. 01
   Read the full schedule. List every percentage, per-transaction charge, monthly minimum, and separate service fee in your agreement. A headline rate leaves out costs that can raise your bill.
2. 02
   Calculate your effective rate. Divide total processing fees by total card volume for the same statement period. Track the result monthly so rate or fee changes stand out.
3. 03
   Compare the same sales. Ask for an interchange-plus comparison using your actual transaction mix and all recurring fees. The comparison should separate the processor’s markup from interchange and network fees.
4. 04
   Negotiate the markup. Interchange and network fees are set outside your processor’s control. Focus your negotiation on the processor’s markup and any additional fees in your contract.

Frequently asked questions