Interchange Plus is one of the most transparent and straightforward pricing structures available to merchants. In this pricing model, the fees charged to the merchant for processing credit card transactions are broken down into two components:
Interchange Fees: Interchange fees are set by the card networks (Visa, Mastercard, etc.) and are paid by the merchant's bank (acquirer) to the cardholder's bank (issuer) for each transaction. These fees are non-negotiable and constitute a significant portion of the overall processing costs.
Markup: The interchange-plus model allows the payment processor or merchant service provider to charge a transparent markup over and above the interchange fees. This markup is their profit for facilitating the transactions and providing other related services.
The Interchange Plus model is preferred by many businesses because it offers greater transparency and cost control. Merchants can see exactly how much they are paying in interchange fees and how much they are paying for the processing service. This pricing model tends to be more cost-effective for larger businesses or those with high transaction volumes
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