PROCESS RITE · PRICING COMPARISON
Interchange Plus vs Flat Rate: Compare the Complete Monthly Cost
Compare two proposals using the same sales volume, transaction count and payment channels. The pricing label alone does not tell you which account costs less.
What changes between the two pricing models?
Interchange plus
A proposal generally separates underlying interchange and network charges from the provider’s markup. Ask how each component appears on the statement, which charges pass through, and which extra account fees apply. A low quoted markup is only one part of the total.
Flat rate
A proposal usually quotes a combined percentage and sometimes a fixed transaction charge for a defined payment channel. Check whether keyed, online, international or other transactions have separate prices. A flat-rate label does not mean that software, disputes, equipment or every other charge is included.
Visa distinguishes bank-to-bank interchange from the merchant discount a business pays its financial institution. For that distinction, see Visa’s merchant fee explanation. The fee schedule in your own agreement determines what you pay.
A worked comparison with fictional numbers
This example demonstrates the arithmetic. These figures are invented, are not Process Rite prices, and are not an estimate of your interchange or a savings promise.
Assume $40,000 of monthly card sales and 1,000 transactions, all in the same payment channel. Proposal A charges a combined 2.80% plus $0.10 per transaction and $20 in monthly account fees. Proposal B passes through an assumed $800 of underlying costs, then adds 0.30% plus $0.08 per transaction and $30 monthly.
| Cost component | Proposal A | Proposal B |
|---|---|---|
| Combined percentage / assumed underlying cost | $40,000 × 2.80% = $1,120 | $800 assumed pass-through |
| Separate percentage markup | Included above | $40,000 × 0.30% = $120 |
| Fixed transaction charges | 1,000 × $0.10 = $100 | 1,000 × $0.08 = $80 |
| Monthly account charges | $20 | $30 |
| Total in this example | $1,240 | $1,030 |
The $210 difference exists only under those assumptions. If underlying costs, payment channels, transaction count or additional charges change, the result changes. Replacing the assumed $800 with $1,050 would make Proposal B total $1,280. This is why a representative statement matters more than a headline comparison.
Average ticket changes the effect of a fixed fee
A $0.10 transaction charge represents 1% of a $10 sale but 0.10% of a $100 sale. A bagel shop with many small purchases should compare transaction charges alongside percentage rates. A repair shop with fewer, larger invoices should still count transactions, but the percentage component may account for more of its processing cost.
Use actual card volume and transaction count rather than dividing total business revenue by a guessed ticket size. Cash sales do not belong in the card-sales denominator. Keep refunds, credits and one-time adjustments identifiable when calculating an observed effective rate.
Build a comparison that includes the account
- Choose the same period. Use a representative month; include a second month if seasonality or an unusual event materially changed activity.
- Separate the channels. Identify in-person, keyed and online payments, plus recurring or other separately priced activity.
- Request every recurring charge. List account, gateway, software, application, equipment and applicable PCI-program charges separately.
- Record exceptions. Ask about refunds, disputes, retrievals, cross-border activity, minimums and early termination. An omitted fee is not the same as a zero fee.
- Compare the operating result. Include funding terms, report access, support responsibility and the equipment or integrations the business actually needs.
Keep a processing-only subtotal and a complete operating-cost total. Mixing software into one provider’s number while excluding it from another can reverse a comparison without any real pricing difference.
Questions to answer before selecting a proposal
Is interchange plus always cheaper?
No. The outcome depends on the underlying transaction costs, markup, account fees and your activity. Request a written comparison using the same assumptions, including the charges outside the quoted rate.
Does a fixed rate guarantee a fixed monthly bill?
No. Percentage and transaction charges change with activity. Other charges, plan changes or separately priced payment types may also affect the bill.
What should a Clifton business send first?
Start with the business type, monthly card volume, transaction count if known, current system and the reason for the review. Arrange a redacted statement review through our statement-review process. Do not send card numbers or bank credentials in the public form.
Bring the decision to Process Rite
For a review in Clifton or a nearby North Jersey community, send your business type, town, current setup and the issue you want resolved. Use the enquiry form for an introduction; arrange secure document sharing after contact.
Request a payments consultation
Hardware, software, installation and processing services must each be identified in the written proposal. Rates, underwriting and supported configurations depend on the provider and account.
Request a Payments Review
Tell us your business type, town, current setup and the issue you want resolved.