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What is Interchange plus Pricing for Merchants?

Interchange plus pricing is a transparent and cost-effective payment processing model where merchants pay the base interchange rate set by card networks (such as Visa and Mastercard) plus a fixed markup from the processor. This model is often referred to as a cost-plus payment model because it itemizes every component of the transaction fee, allowing business owners to see exactly what they are paying for.

The fee structure consists of three main parts:

  1. Interchange Fees: These are set by card networks to cover the issuing bank’s risks and rewards. They vary based on card type (credit vs. debit) and transaction method (chip vs. keyed-in).
  2. Processor Markup: A fixed rate added by the processor, typically ranging from 0.3% to 0.5% plus a small per-transaction fee (e.g., $0.10).
  3. Assessments: Pass-through fees charged by the card brands.

This model is highly recommended for high-volume businesses, such as restaurants and retail stores, because it provides wholesale rates and greater cost predictability compared to tiered or blended pricing models. It also allows merchants to benefit from lower regulated rates on debit transactions and avoid hidden surcharges associated with bundled categories.

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POS Brokers, LLC is a registered ISO of BBVA USA, Birmingham, Alabama – Member FDIC

The Clover name and logo are owned by Clover Network, Inc., a wholly owned subsidiary of First Data Corporation. All other trademarks are the property of their respective owners.

New Merchant Account required.* Merchant must qualify for free or discounted hardware. Not all accessories apply.

*Limit of one (1) Discounted Clover Mini, or one (1) other Clover POS system. New Customers only. Buyer must open a Merchant Account through us for use with the Clover POS System. Ask your Sales Representative for complete details.

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2026 © The POS Brokers. All rights reserved.

POS Brokers, LLC is a registered ISO of BBVA USA, Birmingham, Alabama – Member FDIC

The Clover name and logo are owned by Clover Network, Inc., a wholly owned subsidiary of First Data Corporation. All other trademarks are the property of their respective owners.

New Merchant Account required.* Merchant must qualify for free or discounted hardware. Not all accessories apply.

*Limit of one (1) Discounted Clover Mini, or one (1) other Clover POS system. New Customers only. Buyer must open a Merchant Account through us for use with the Clover POS System. Ask your Sales Representative for complete details.

POS Brokers is a registered ISO of Citizens Bank, N.A., Providence, RI

The Clover name and logo are owned by Clover Network, Inc., a wholly owned subsidiary of First Data Corporation. All other trademarks are the property of their respective owners. Articles | News | Blog | CADE FAQ