What is the Plus in Interchange Plus Credit Card Processing?
The Plus in Interchange Plus Credit Card Processing is the fee for processing services or merchant services charged by a credit card processor. In general, this usually referrs to the processor passing through their Visa/MasterCard/Discover processing costs (both Interchange and Assessments) to the merchant, and charging a mark-up over the pass-though costs for setting up the account, providing service to maintain the account, processing and clear transactions, underwriting risk on the account, and sending settlements to the merchant's business bank account.
The Plus can be a fixed mark up over all Interchange Rates and Card Association Assessments. For example, 0.10% and $0.10 per authorization over Interchange and Assessments.
There are also interchange plus pricing models with different mark ups for different Interchange Rates. These models might have different processing service fees for US domestic interchange vs International Interchange or different authorization fees for each Payment Card Brand. Some interchange plus pricing for credit card processing may be a mark-up over Interchange, but include the charges for Dues and Assessments.
Interchange plus pricing is extremely transparent because the pass through credit card processing costs are public knowledge, easy to identify and isolate into individual fee components, and exactly the same for all processors. As long as the merchant has a clear understanding of what the Plus mark-up is covering and how it is being applied, then it is quite easy to make an apples to apples cost comparison.
Burlington Bank Card strives to provide our merchants with secure and reliable interchange plus merchant payment processing, transparent pricing, and one-on-one personal service.
Please call 1-800-758-1002 or contact us to learn more about Interchange Plus Pricing, or get a quote.