Also called: Cost-plus pricing, IC+, Interchange pass-through
What interchange-plus pricing is
Interchange-plus pricing itemizes the three parts of your card-processing cost: interchange paid to the cardholder’s issuing bank, network fees paid to card brands, and your processor’s markup. The first two are pass-through costs. Your processor sets its markup under your contract.
The “plus” is the processor’s charge, often stated as a percentage, a per-transaction fee, or both. For example, a quote of interchange + 0.30% + $0.10 means the processor adds 30 basis points and 10 cents to the pass-through costs for each transaction. The markup is the part you can negotiate.
Interchange-plus makes the markup visible, and the markup is the part you can negotiate.
How the charges add up
Your total changes with the card and how the customer pays. A debit transaction, a rewards credit card, and a keyed online sale can each land in different interchange categories. Network fees also have their own rules. As of 2026, Visa charges a 0.14% assessment on credit sales and a $0.0195 Acquirer Processing Fee per credit authorization.
On a $100 sale, a markup of 0.30% plus $0.10 adds $0.40 to the bill, an illustrative example. Interchange and network charges are added separately, so the total cost is higher. The example shows why comparing only the processor’s percentage misses the full transaction cost.
What a markup adds to a $100 sale
| Sale amount | $100 |
|---|---|
| Markup quote | 0.30% + $0.10 (illustrative) |
| Markup on this sale | $0.40 (illustrative) |
| Interchange and network fees | Added separately |
This example isolates the processor markup. The full processing cost also includes transaction-specific interchange and network charges.
What it means for your costs
This model makes the processor’s price visible, but it does not guarantee the lowest bill. Your effective rate moves with your card mix and transaction details, even when the markup stays fixed. A debit-heavy business and a business with many premium or corporate cards will not have the same pass-through costs.
The transparency gives you a useful negotiating point. Compare the same markup components across offers, including both the percentage and per-transaction charge. Review other processor charges separately too, such as monthly fees or minimums, because interchange-plus describes card transaction pricing, not every line on your account.
Where it appears on your statement
Your statement should separate interchange, network or assessment fees, and processor markup. Look for the total of each category, then compare the processor’s percentage and per-transaction charge with your signed pricing schedule. Network fees are not processor markup, even when both appear among transaction charges.
Detailed statements take more work to reconcile than a single bundled rate, but they let you check whether pass-through costs and the contracted markup are being billed separately. If the statement shows one combined rate with no visible breakdown, you cannot verify the markup from that figure alone.
What you can actually change
- Compare the markup. Match the percentage and per-transaction charge on your statement to your pricing schedule. Compare both figures when reviewing another offer.
- Separate pass-through costs. Add up interchange and network fees separately from processor charges. This shows whether a quoted savings changes the markup or only reflects a different card mix.
- Review extra charges. Check monthly fees, minimums, and other account charges outside the per-transaction markup. Interchange-plus does not define those charges.
Frequently asked questions
Is interchange-plus pricing always cheaper?
No. Your total depends on your interchange categories, network fees, processor markup, and other account charges. The model makes those parts easier to inspect, but a high markup or added monthly fees can still produce an expensive bill.
Which part of interchange-plus pricing can I negotiate?
You can negotiate the processor’s markup, including its percentage and per-transaction fee. Interchange and network fees are pass-through charges set under card-network rules, not processor prices to bargain down.
How do I identify interchange-plus pricing on a statement?
Look for separate totals or line items for interchange, network or assessment fees, and the processor’s markup. Then compare the markup’s percentage and per-transaction amount with your pricing schedule. A single blended rate does not show that breakdown.