Plain-English answers about processing fees, pricing models and reading your statement — from an independent merchant services consultant.
Interchange-plus (also called cost-plus) is a pricing model where you pay the actual interchange rate set by Visa, Mastercard, Discover and Amex for each transaction, plus a fixed, disclosed markup from your processor — for example interchange + 0.20% + 10¢. Because the processor's margin is separated from the card networks' cost, you can see exactly what you're paying and it's the most transparent model available.
Interchange-plus passes through the true card cost plus one fixed markup. Flat-rate charges one percentage on every card (simple, but you overpay on low-cost debit cards). Tiered pricing sorts transactions into 'qualified', 'mid-qualified' and 'non-qualified' buckets; the processor decides which bucket a card lands in, and many transactions get 'downgraded' to the most expensive tier. For most established small businesses, interchange-plus costs the least.
Add up every fee on your monthly statement (processing, monthly, PCI, statement, batch and any other fees) and divide by your total card sales for that month. Example: $1,150 in fees ÷ $40,000 in card sales = 2.88% effective rate. Comparing effective rates is the only apples-to-apples way to compare processors.
It depends on your card mix and how you take payments (in person vs. keyed or online), so there's no single number. What matters is how much of your cost is markup above interchange. A statement review separates the unavoidable card-network cost from what your processor is adding.
Look for four things: (1) total card volume, (2) total fees, (3) how transactions are priced — per-card-type interchange lines means interchange-plus, 'qualified/non-qualified' lines means tiered, and (4) monthly and annual fees such as PCI, statement, gateway, and 'regulatory' or 'compliance' fees. If you can't tell which pricing model you're on, that itself is a warning sign.
Common ones are non-qualified surcharges, PCI non-compliance fees, annual or 'membership' fees, statement fees, batch fees, gateway fees you didn't ask for, rate increases disguised as 'network' or 'regulatory' fees, and early-termination fees or equipment leases in the contract.
Often yes. Many terminals can be reprogrammed, and many POS systems support more than one processor. If your equipment is locked to your current processor or leased, I'll tell you the cost of changing before you decide.
A properly planned switch usually takes a few days of paperwork and a short changeover — typically done in a single visit, outside your busy hours.
Surcharging and cash-discount programs are available where they're legal and compliant with card-brand rules. I'll explain the rules and disclosure requirements so you can decide if one makes sense for your business.
I'm an independent consultant working with CardConnect (a Fiserv company) and Luqra, and I offer Clover POS and terminals. Being independent means I can compare options and recommend whichever costs you less.
Send me your most recent monthly statement. Within 24 hours I'll send back your true effective rate, a list of every fee you're paying, and a side-by-side quote on interchange-plus. It's free and there's no obligation.
I work in person with businesses across the Austin area — Austin, Round Rock, Cedar Park, Georgetown, Pflugerville, Leander, Hutto, Lakeway, Bee Cave, Buda and Kyle — and can review statements for businesses anywhere.
Serving: Austin · Round Rock · Cedar Park · Georgetown · Pflugerville · Buda & Kyle
Most merchants are losing $200–$800/month to fees buried in their statement. Send it over — I'll show you exactly where your money is going.