Short answer
The part of a card fee that your processor keeps, on top of interchange and card network fees.
On interchange-plus pricing the markup is stated separately, typically as basis points (for example 0.15%), a per-transaction fee (for example 5¢), or both. It is the only part of card pricing that is truly negotiable, because interchange and network fees are set by Visa, Mastercard and the issuing banks.
Markups fall as volume rises. When comparing quotes, check whether network fees are passed through at cost or quietly marked up too. More in interchange-plus pricing explained.
Part of our guide to interchange-plus pricing explained.
Related terms
- Interchange-plus pricing: A pricing model where you pay the actual interchange and network fees on each payment, plus a fixed processor markup.
- Basis points (bps): One basis point is one hundredth of a percentage point: 0.01%. 25 basis points is 0.25%.
- Interchange: The fee the cardholder's bank (the issuer) charges on every card payment, set by Visa and Mastercard and paid through your processor.