Understanding Interchange ++: A Transparent Way to Process Payments
When it comes to payment processing, transparency and fairness are essential for businesses. That’s where Interchange ++ pricing comes in—a straightforward and cost-effective way to manage card payment fees. But what exactly is Interchange ++, and how does it benefit your business? Let’s break it down.
What is Interchange ++?
Interchange ++ is a pricing model used by payment processors to calculate the costs of handling card transactions. Unlike traditional “blended” pricing models, which bundle fees into one rate, Interchange ++ separates these fees into three distinct components:
Interchange Fees
These are fees set by card networks (like Visa or Mastercard) and paid to the cardholder’s bank for processing the transaction. The rate depends on factors like the card type (debit or credit) and transaction type (in-person or online).
Scheme Fees
These are charges from the card networks themselves (e.g., Visa or Mastercard) to cover the infrastructure and technology needed for secure transactions.
Processor Markup (++)
This is the payment processor’s fee for handling the transaction. With Interchange ++, this fee is clearly defined and transparent.
Why Choose Interchange ++?
Transparency
Unlike bundled rates, Interchange ++ breaks down the costs, so you know exactly what you’re paying and why. This clarity helps you better understand your payment processing fees.
Cost-Effectiveness
Because you’re charged based on actual costs (interchange and scheme fees) plus a small, defined markup, Interchange ++ can be more competitive than flat-rate pricing, especially for businesses with a high transaction volume.
Fairness Across Transactions
Every transaction is priced individually based on its specifics—card type, transaction method, and other factors. This ensures you’re not overpaying for lower-cost transactions.
Optimised for Lower-Value Transactions
Card schemes and interchange fees are calculated for each sale, often to the nearest penny. For lower-value transactions, rounding can work in your favour, and in some cases, fees may not even be charged. This makes Interchange ++ particularly advantageous for businesses handling smaller, frequent transactions.
Tailored to Your Business
Interchange ++ adapts to the needs of your business. Whether you process small, frequent transactions or larger, high-value payments, this pricing model scales with your activity.
By understanding how each transaction is charged, Interchange ++ ensures you only pay what’s fair, helping your business thrive with greater cost efficiency.
How Does TapaPay Use Interchange ++?
At TapaPay, we use the Interchange ++ model to offer you a transparent, competitive, and flexible pricing structure. Our goal is to empower businesses by eliminating hidden fees and ensuring you only pay for what you use. With TapaPay, you get:
Clear breakdowns of your payment costs.
No hidden charges, like PCI compliance or gateway fees.
Pricing that reflects the true cost of processing your transactions.
Who Benefits from Interchange ++?
Interchange ++ is ideal for businesses that value transparency and want to optimize their payment processing costs. It’s particularly beneficial for:
High-volume merchants: Save on fees by paying exact costs for each transaction.
E-commerce businesses: Handle a mix of card types and transaction methods with fair pricing.
Small to medium businesses: Avoid overpaying for simple, low-cost transactions.
Ready to Simplify Your Payments?
Interchange ++ gives you the transparency, fairness, and cost-effectiveness you need to grow your business. At TapaPay, we’re here to help you understand your fees and get the most out of your payment processing.
Contact us today to learn more about how TapaPay and Interchange ++ can benefit your business!