What is Interchange-Plus Pricing?

The Most Straightforward Pricing Model

Interchange-plus pricing operates by adding a consistent, flat margin over the Interchange fees. Typically, these models showcase a percentage fee and a per-transaction fee above the interchange rate. This approach allows merchant service providers to price services fairly. Merchants processing higher volumes will incur more fees, but only in proportion to their volume. The same principle applies to smaller merchants. Smaller merchants aren't penalized for lower transaction amounts by maintaining a constant margin.

Additionally, this method offers transparency. Allied Payments is dedicated to showing our clients exactly where our profits come from. We’re also committed to a fair pricing model that informs our merchants about what to expect. With Interchange-plus pricing, you can see exactly how much money went to the card-issuing banks, the card associations, and Allied Payments.

Not Everyone Follows This Model

This approach is quite different from many other processing companies. Most merchant service providers do not disclose interchange rates. They only reveal the rate at which you’re assessed, leading to a tendency to overcharge for services.

When you can’t determine your provider's transaction cost, you can't ascertain their charges or the fairness of those charges. Unfortunately, this industry often has a negative reputation due to excessive fees, convoluted pricing structures, and a predatory attitude toward smaller merchants.

Allied Payments was established to change this dynamic.