---
title: "Interchange Plus Pricing: How It Works and Why It Matters"
slug: "what-is-interchange-plus"
description: "Demystify interchange plus pricing! Learn how it works, why it's beneficial, and how it gives you control over your credit card processing costs."
updated: 2025-06-16T18:55:38Z
published: 2025-06-16T18:55:38Z
canonical: "learn.helcim.com/what-is-interchange-plus"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://learn.helcim.com/llms.txt
> Use this file to discover all available pages before exploring further.

# What is interchange plus pricing?

So, you've heard about interchange plus pricing and how it can save you money. But how does it work? This article breaks down this transparent pricing model, so you take more control over your processing costs.

---

**In this article**

- [Video: how interchange plus works](/v1/docs/what-is-interchange-plus#video)
- [Why is it called interchange plus?](/v1/docs/what-is-interchange-plus#why-is-it-called-interchange-plus)
- [How does it work?](/v1/docs/what-is-interchange-plus#how-does-it-work)
- [Why is it beneficial?](/v1/docs/what-is-interchange-plus#why-is-it-beneficial)
- [Conclusions](/v1/docs/what-is-interchange-plus#conclusions)
- [Next steps](/v1/docs/what-is-interchange-plus#next-steps)
- [FAQs](/v1/docs/what-is-interchange-plus#faqs)

---

## Video

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[YouTube video player](https://www.youtube.com/embed/ZPlmGnc6bc4?si=G8fzGvYYl4JGnaq0&start=111)

## Why is it called interchange plus?

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The name "interchange plus" actually gives you a clear picture of how this pricing model works. Let's break it down.

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**Interchange**

This part refers to the [**interchange fees**](/v1/docs/what-am-i-paying-for) set by the cardholder’s bank, as well as the assessment fees paid to card networks like Visa and Mastercard. This portion is *not* determined by us, the payment processor.

In this context, the word “interchange” represents the *combined* cost of interchange and assessment fees.

**Plus**

The "plus" refers to the **processor's markup** – the fee your payment processor (like Helcim) charges for their services.

---

So, "interchange-plus" literally means the cost of interchange and assessments, *plus* the processor's markup.

| ![](https://cdn.document360.io/4e721329-1a9d-4ef0-8d2f-497e0c1f185a/Images/Documentation/sparkle.png) | This transparent breakdown is what sets it apart from other pricing models, where these costs are often bundled together. |
| --- | --- |

## How does it work?

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The magic of interchange plus is that you only pay for what you need. Instead of being charged a fixed, inflated rate for every transaction, you pay for the interchange and assessment fees, plus a small markup.

| ![](https://cdn.document360.io/4e721329-1a9d-4ef0-8d2f-497e0c1f185a/Images/Documentation/chat.png) | We can relate this to taking public transit. Your fare is adjusted for the number of zones you travel on a subway line, rather than paying the full cost of all the zones for travelling one station. |
| --- | --- |

Here are a couple scenarios to illustrate how this works.

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**Scenario 1: In-Person Clothing Purchase**

A customer buys a $100 jacket in person using a **standard Mastercard.**

Let’s assume the following fees.

- The **interchange rate** is 0.92%
- The **assessment fee** is 0.10% + 1¢,
- The **processor markup** is 0.40% + 8¢

We end up with the following total fee.

- **Interchange fee:** 0.92% of $100 = $0.92
- **Assessment fee:** 0.10% of $100 = $0.10 + 1¢ = $0.11
- **Processor markup:** 0.40% of $100 = $0.40 + 8¢ = $0.48
- **Total fees:** $0.92 (interchange) + $0.11 (assessment) + $0.48 (markup) = $1.51

This results in a **true rate** of 1.51% ($1.51 / $100).

---

**Scenario 2: Online Clothing Purchase**

A customer buys a $100 jacket online using a **premium Mastercard.**

Because the transaction is online and the card is premium, the fees change.

- The **interchange rate** is now 2.54%
- The **assessment fee** is now 0.10%
- The **processor markup** is now 0.50% + 25¢

We end up with a higher total fee.

- **Interchange fee:** 2.54% of $100 = $2.54
- **Assessment fee:** 0.10% of $100 = $0.10
- **Processor markup:** 0.50% of $100 = $0.50 + 25¢ = $0.75
- **Total fees:** $2.54 (interchange) + $0.10 (assessment) + $0.75 (markup) = $3.39

This results in a **true rate** of 3.39% ($3.39 / $100).

---

As you can see, your fees vary depending on the card type and transaction type. With interchange-plus pricing, you see these [variations clearly](https://www.helcim.com/pricing/), allowing you to understand how different transactions contribute to your overall processing costs.

## Why is it beneficial?

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Interchange plus is beneficial for the following reasons.

- **Transparency:** You know exactly what you're paying for.
- **Potential Savings:** Interchange-plus can often be more cost-effective, especially for businesses with diverse card types and transaction volumes.
- **Control:** You can better manage your costs by understanding the factors that influence interchange rates.

## Conclusions

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Here’s a point-form review of what we learned in this article.

- **Interchange** refers to the fees charged by the issuing banks and card networks, while **plus** refers to the markup charged by the payment processor.
- **Each time** you process a transaction, a unique rate is determined based on the customer’s card and transaction method. E.g. in-person transactions with consumer credit cards cost less than online transactions with premium credit cards.
- **Interchange plus** is sought after for its transparency, savings, and control over processing costs.

## Next steps

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Now that you understand how interchange plus pricing works, you might be wondering how this compares with other pricing models. Check out our [next article](/v1/docs/interchange-plus-vs-other-models) to find out more.

| ![](https://cdn.document360.io/4e721329-1a9d-4ef0-8d2f-497e0c1f185a/Images/Documentation/cursor.png) | You can also visit [our pricing page](https://www.helcim.com/pricing/) for a full breakdown of interchange, assessment, and processor fees based on card and transaction types. |
| --- | --- |

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### FAQs

**Is interchange-plus right for my business?**

Interchange-plus can be beneficial for businesses of all sizes, but it's particularly advantageous for those with higher volumes, diverse card mixes, or those looking for greater transparency in their processing costs.

You can use our free [statement comparison tool](https://www.helcim.com/compare/) to calculate how much your business would save with interchange plus.

**I’m still confused about interchange plus pricing. What if I have more questions?**

Our friendly and knowledgeable support team is always here to help. [Contact us](https://www.helcim.com/contact/) with any questions you have about interchange-plus pricing or any other payment processing needs.