Interchange-Plus Pricing
Interchange-plus pricing is a payment processing model in which the merchant or platform pays the actual interchange cost plus a fixed processor markup, making the full economics transparent versus a flat-rate model that bundles all costs.
Interchange-plus (also called cost-plus or pass-through pricing) is the pricing model used in most direct processor relationships at scale. The processor passes through the actual interchange cost (set by Visa/Mastercard) and adds a transparent fixed markup — for example, "interchange + 0.30% + $0.10".
Compared to flat-rate pricing (Stripe's 2.9% + $0.30): interchange-plus is always cheaper at meaningful volume because the processor cannot earn margin on the spread between the flat rate and actual interchange. On a consumer debit card at 0.9% interchange, flat-rate costs 2.9% while interchange-plus costs ~1.2%.
The catch: interchange-plus requires more sophisticated billing, more transparent pricing conversations with merchants, and in some models requires the platform to manage card-type mix optimization (L2/3 data, routing, etc.).
For platforms processing $3M+ monthly, the switch from flat-rate to interchange-plus typically generates $200K–$600K annually in recovered economics — depending on card mix and current flat rate.