Interchange Pass-Through

Interchange Pass-Through, also known as Interchange Plus pricing, is a transparent pricing model used in merchant accounts for processing credit and debit card transactions. This method involves directly passing the interchange fees — set by card networks like Visa and MasterCard — to the merchant, along with a fixed markup by the payment processor.

Interchange Pass-Through pricing is particularly favored by merchants who value transparency and have a good grasp of their own sales patterns, allowing them to take advantage of potentially lower fees. It's also suitable for those who handle a diverse range of transactions, as it adjusts costs based on the actual interchange rates dictated by card usage, rather than a one-size-fits-all fee structure.