Interchange Plus Pricing

What Is Mt Olympus (Interchange) Plus Pricing.

Utah EZ Pay what’s you to be in the know. Many business owners are familiar with the term Interchange Plus Pricing. What this amounts to is that each of the card types has its own established pure cost pricing structure, the fee that is charged to the merchant service providers for each card type. This is the case with North American Bancard and all other merchant service providers. This is an established pure cost interchange for processing each and every card transaction.

Adding Fees On Top To Be In Business.

The merchant service provider (processor), then adds on additional fees to process card transactions for your business. These extra fees support them in running their processing business. This is where the plus comes in when we say “interchange plus”. This is that small percent of plus money they receive proceeds from merchants (business owners) for each card transaction. The plus is called a basis point, for instance, 50 basis points = 0.005 or 0.5%. (i.e. with a $1,000 card transaction, the processor will charge a $5 fee).

Looking For Padding In Interchange Plus Rates.

What is padding for interchange plus merchant service processing rates? When looking at your credit card processing statement, you will see the pure cost rate (which is the interchange rate) listed for each interchange pure cost from the card issuing brands. The plus on interchange is the fee added by the processor for their service.

Often times, the processor pad the interchange pure cost rate which is not the true cost of the rate specified by the card issuer. The rate is padded (increased), making the merchant believe it is the pure cost when it is not. 

i.e. 1.89% interchange rate charged when the actual interchange rate should be 1.69%, so this rate was padded by .20% which is 20 basis points.

Interchange rates

The Rate We Set Will Be The Rate That You Pay.

When we set up your account with let’s say, .35 basis points over pure cost of each card transaction you run, it will stay that way. This is a legal agreement between you as the merchant, and the merchant service provider. The Processor. With our screened processors, you will not find padding on your statement. They are simple to read with all of the rates listed and no hidden fees. Submit your statement today at free or call/text us at 801-205-1955.

Below Is A Good Video Explaining The Interchange Plus Statements.

Interchange Plus Credit Card Processing.

Here at Utah EZ Pay we are ready to assist in getting your account set up with Interchange Plus Pricing in
a little as 15 minutes. Let us know how we can help your business start saving TODAY!