Short answer
A pricing model where you pay the actual interchange and network fees on each payment, plus a fixed processor markup.
Interchange-plus (IC+) separates the cost of a card payment into what the card networks and issuing banks charge and what your processor charges. The pass-through part changes with every card; the markup is fixed and negotiable, usually a percentage, a per-transaction fee or both.
For merchants processing millions a year, IC+ is usually cheaper than a flat rate because you stop paying a premium-card price on every debit and standard credit card. See interchange-plus pricing explained for a worked example, or estimate the difference with the Stripe fee calculator.
Part of our guide to interchange-plus pricing explained.
Related terms
- Interchange: The fee the cardholder's bank (the issuer) charges on every card payment, set by Visa and Mastercard and paid through your processor.
- Processor markup: The part of a card fee that your processor keeps, on top of interchange and card network fees.
- Interchange-plus-plus (IC++): A form of interchange-plus pricing that lists interchange and card network fees as two separate pass-through lines, plus the processor markup.
- Flat-rate pricing: One fixed price for every card payment, such as 2.9% + 30¢, whatever the card type and real cost underneath.