Interchange Plus vs Flat-Rate Payment Processing
How interchange-plus pricing differs from flat-rate processing, when each tends to fit, and how CDG’s published markups fit the interchange-plus model.
Alberto Vasquez2 min read
- interchange-plus
- pricing
- fees
- payment processing
Affiliate disclosure: ClientBilling may earn a commission from CDG Commerce. Details
Processors sell simplicity or transparency. Flat-rate bundles costs into one percentage (sometimes plus a per-transaction fee). Interchange-plus shows network costs plus a processor markup.
Flat-rate in one minute
You see something like “2.9% + $0.30” on many cards. Easy to forecast. Harder to know whether you overpay as volume grows or as debit mix increases.
Interchange-plus in one minute
Your statement separates:
- Interchange (varies by card)
- Network assessments
- Processor markup (percent + cents)
CDG publishes interchange-plus markups for $10K-200K a month of 0.35% + $0.15 online, 0.30% + $0.10 retail, and 0.25% + $0.10 nonprofit, with the gateway included and interchange separate.
Which tends to fit
| Situation | Often better starting point |
|---|---|
| Low volume, need speed | Flat-rate simplicity |
| Rising volume, mixed cards | Interchange-plus transparency |
| Mostly card-present retail | Compare retail markups carefully |
| Heavy rewards / corporate cards | Model interchange; do not assume flat is cheaper |
How to compare apples to apples
- Export 1-3 months of card mix.
- Estimate interchange (or ask providers for a cost analysis).
- Add processor markup or flat rate.
- Include monthly fees, PCI, chargeback, and gateway fees.
Where CDG fits this conversation
CDG publishes flat rate for $1K-10K a month (2.90% + $0.30 swiped and mobile, 3.50% + $0.30 online, $9.95 a month), interchange-plus for $10K-200K a month, and wholesale membership above $200K at cost plus $0.15 to $0.06 a transaction. Use our CDG Commerce guide for the details, then request a quote if interchange-plus is your preferred model.
Sources
Founder and editor, ClientBilling
Alberto writes about merchant accounts, processing fees, and billing operations for small and mid-sized businesses. He reads the published rate sheets, compares them at stated volumes, and says plainly where a provider is not a fit. ClientBilling is an affiliate of CDG Commerce and discloses it on every page.