Wholesale/Interchange-Plus Processing

Are you looking for a better method to accept payments?

Do you ever see your rep or even hear form your processor?

When was the last time you got a rate reveiw?

Do you want to learn more about credit card processing or do you just want to see results!

Outside of the Cash Discount and Zero Cost Processing programs at KeepYour.Money we of course also traditional processing methods. We only offer three traditional credit card processing programs; Interchange-Plus, Flat Rate and Flat-Cost. We don’t offer all pricing methods because that only benefit the processor or sponsor bank, such as the Multiple-Tiered method which was originally designed to confuse merchants and maximize profits by the unnecessary bundling of card types.

What is this Wholesale/Interchange-Plus Pricing program all about?


Interchange Costs are defined as…. “In credit card processing, interchange is the money transferred from the acquiring bank to the issuing bank for each bankcard transaction. Interchange fees account for the bulk of the costs associated with a credit card or debit card transaction. These processing costs and are established by the card brands (Visa, MasterCard, Discover) of open-loop processing systems.”

Interchange tables are set forth by Visa, MasterCard & Discover twice a year in order to categorize and set the pricing for each individual card type that is available to the public. These cards include debit cards, ebt cards, airline cards, rewards cards, corporate cards, store-branded cards; again, every card that is available to the public. Each card is provided an interchange price or value (e.g., the current regulated debit-card interchange rate is 0.05% + $0.22) more easily recognized as the Wholesale Cost of the card.

Now that you understand what interchange is, you can quickly grasp the concept of Wholseale/Interchange-Plus Pricing.

Processors and banks simply mark up the % & Cent value of the interchange cost dictated from the card brands.

e.g. A common, industry price is .50% (50 basis points) & $.10 (10 cents) above interchange.

Benefits of Wholesale/Interchange-Plus Pricing


The benefits in this method of credit card processing pricing clearly lies in the blatant transparency. So, no matter what card the business owner accepts the processors up-charge is fixed and never changes. This means the business owner can literally calculate the gross profit of His or Her processing provider. This allows the merchant to make better informed decisions about the brevity or longevity of their current merchant processing situation. Now, if a merchant was on Tiered Rate% Pricing and Flat Rate% pricing, calculating the processor’s profits in this same manner would be next to impossible.

Cons of Wholesale/Interchange-Plus Pricing


Theoretically, there are no cons to this pricing model, however greed has a natural tendency to infect and corrode everything it touches and over the years this nasty vice has clutched onto the Wholesale/Interchange Plus Pricing model and all but soiled it’s original intent. Since processors were unable to generate substantial profits when utilizing this method, they started to willingly engage in degenerative behavior.

These con men started to “pad the interchange tables”. Meaning they would illegally manipulate the cost of interchange to off-set their hypothetical profit-loss.

So, the moral of this tale is…Wholesale/Interchange Plus Pricing looks great on the outside, but it’s what inside of the processor that matters. We only work with vetted-industry professionals at KeepYour.Money so nightmares like this never happen under our watch.