Pricing Education

Interchange-plus pricing: transparent, scalable, and fair

If your business prefers to absorb processing costs instead of passing them along to customers, interchange-plus pricing is usually the most transparent and scalable model. You see the wholesale cost of the card, the processor’s markup, and what you are actually paying.
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Transparent
wholesale cost + clear markup
Scalable
fairer as your business grows
Lower
effective rates on many card types
What It Is

Interchange-plus pricing means wholesale cost plus a clear markup

Every time a customer uses a card, part of the fee goes to the card-issuing bank and card brands. That wholesale component is called interchange, and it is not negotiated by your local rep. What is negotiable is the processor’s markup on top of it.
Interchange-plus = interchange + processor markup.

We believe this is usually the most honest pricing model for businesses that prefer to absorb processing costs themselves instead of using dual pricing or cash discounting.

Why Businesses Choose It

Clearer pricing and better economics than flat-rate models

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Total transparency
You can see what the card brands charge at the wholesale level versus what your processor is earning on top.
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Fairness at scale
As volume grows, interchange-plus generally stays more rational and easier to optimize than flat-rate pricing.
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Lower effective rates
Especially on lower-cost cards like many debit transactions, interchange-plus can prevent you from massively overpaying.
Real Example

Why flat-rate pricing can quietly get expensive

A basic debit card might cost around 0.5% at the wholesale level. If you are paying 2.9% across the board, that spread gets ugly fast.
Simple example

If the true wholesale cost on a card is around 0.5%, and you are paying 2.9% flat, you may be giving up far more margin than necessary on that transaction.

That is exactly why interchange-plus matters.
How It Works

We build the structure around your business, not the other way around

Tampa Bay Pay reviews your business type, monthly volume, average ticket, risk level, and operational needs to recommend a pricing structure that actually fits.
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Typical starting structure
For a new, low-risk business, a common starting point may look something like:

Interchange + 0.75% + $0.15 per transaction + monthly fee

This is a starting point for qualified businesses. Rates can vary based on business type, monthly volume, average ticket, risk profile, funding speed, software, gateway needs, and overall account structure.
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Competing offer?
Have another proposal in hand? We’ll review it honestly, explain the real economics, and match or beat it when possible.
Flat Rate vs. Interchange-Plus

Easy is not always cheaper

Flat-rate pricing is simple to understand, but simplicity often comes with extra margin built in. Interchange-plus is usually the fairer long-term model if you plan to absorb fees.

Flat Rate

  • One rate for everything
  • Simple to understand at first glance
  • You rarely know your true cost
  • High margin on many low-cost cards
  • Often more expensive as volume grows

Interchange-Plus

  • Variable based on the card used
  • Full visibility into wholesale fees
  • Fairer economics across card types
  • More scalable as volume increases
  • Better for businesses that want transparency
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We can show you what you’re actually paying

No guesswork. No contracts. No pressure.

If you are currently using a flat-rate provider, Tampa Bay Pay can break down your statement, show your effective rate, and explain whether interchange-plus would improve your economics.

Ready to see your true rates?

Let’s break down your current fees and show you how interchange-plus pricing may help you save money. For a free statement analysis, send your most recent merchant services statement to [email protected] or book a consult with Tampa Bay Pay.

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No guesswork · No pressure · Transparent pricing

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