What are Wholesale Credit Card Processing Rates?

Wholesale credit card processing rates, often referred to as cost-plus or interchange-plus pricing, allow merchants to access the base costs set by card networks and banks with a transparent processor markup.

Industry benchmarks for these rates typically include the following components:

• Interchange Fees: These are paid to the card-issuing bank and usually range from 1.5% to 3.5%.
• Card Brand Assessments: Non-negotiable fees from networks like Visa or Mastercard that typically range from 0.13% to 0.15% of sales volume.
• Processor Markup: The spread added by the processing company, which often ranges from 0.5% to 1% plus fixed per-transaction fees of $0.10 to $0.30.

To access these wholesale rates, merchants typically must undergo a qualification process that evaluates business details, transaction volume, and risk profiles. Qualified merchants can often achieve lower overall costs compared to standard flat-rate pricing, potentially saving significant amounts on annual transaction fees. Other benefits associated with these plans may include no setup or cancellation fees and integrated POS hardware solutions.