What is interchange-plus pricing?
Interchange-plus is a way of pricing card processing where you pay the card networks’ actual costs, passed through with no markup, plus one fixed fee from your processor. It’s the most transparent pricing model, and often costs less for growing businesses, especially on debit and in-person sales.
How it works
Every card sale carries two costs:
- The “interchange” part: interchange set by the card-issuing bank, plus network fees set by Visa, Mastercard, Discover and American Express. Every processor pays these same rates.
- The “plus” part: your processor’s markup, usually a small percentage and/or a per-transaction fee. This is the only part a processor controls, and the only part that differs between them.
With interchange-plus, the two parts are shown separately on your statement. You can check that the network costs match published rates and see exactly what your processor earns.
Interchange-plus vs. flat-rate vs. tiered
| Interchange-plus | Flat-rate | Tiered | |
|---|---|---|---|
| What you pay | Actual network costs plus a fixed markup | One blended rate on every card | Different rates for “qualified,” “mid-qualified” and “non-qualified” cards |
| Transparency | Highest. Every cost is itemized. | Simple, but the markup is hidden inside the rate | Lowest. The processor decides which tier applies. |
| Cost on lower-cost cards like debit | You get the savings | You pay the full blended rate | Varies |
| Best for | Businesses that want to know and control their costs | Very small or occasional sellers who value simplicity | Rarely the best choice |
When does interchange-plus save money?
Flat-rate pricing charges the same markup on every card, so it overcharges most on the cards that cost the least to accept, like regulated debit cards. The more you process, and the more of your sales are in person or on debit, the more interchange-plus tends to save.
The fairest way to compare is your effective rate: total processing fees divided by total card sales for the month. Look at the same month of sales under each quote.
How pricing works with Sovara Nation Pay
Sovara Nation Pay refers merchants to First Nationwide Payments, the registered ISO that provides the merchant account. Interchange and network fees are passed through at cost, plus one processing fee quoted by First Nationwide Payments. It’s agreed in writing before you sign and printed on every statement. Accounts are month-to-month.
Common questions
Is interchange-plus the same as “cost-plus” or “pass-through” pricing?
Yes. These names describe the same model.
Why does my rate change from month to month?
Because the network costs depend on the mix of cards your customers use. Your processor’s markup stays the same.
Can a processor lower interchange?
No. Interchange is set by the card networks and issuing banks. A processor can only lower its own markup, and help your transactions qualify for the lowest interchange category.