What is interchange plus in payment processing?

Interchange Plus pricing for payment processing by Clearly Payments

Interchange plus pricing, sometimes called cost plus, is on of the less common ways that payment processors price to merchants. There are other forms of pricing, such as flat rate and tiered. In the end, interchange plus is regarded as the most transparent and fair for merchants. That’s why it’s not used very much. Tiered …

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What are basis points?

When you’re in payments, you’re in an industry with thousands of competitors in a complex value chain. In fact, most of the industry involves just a handful of very large banks. However, the industry is so big that very large companies can be built by just taking a sliver of the industry. That’s why …

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What is the effective rate in payment processing?

The credit card processing industry has some of the most complex pricing of any industry. To make it more difficult, the industry is so competitive that most payment processors don’t try to make it clear and even try to mislead what the pricing actually is. Is is also common that processors hide fees, overcharge for …

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