Picking interchange plus plus rate


The payment model can decide what you are paying during the transactions. Sometimes, your enterprise might end up paying a high cost based on the bundle you are using. Usually, you might face this if you are using the tiered pricing model.

There has been a radical switch from the tiered pricing model to the interchange plus plus rate. That is due to the fact that you don’t have to pay extra prices which might not show up in the billing model at first.

What is the Interchange Plus Plus Rate?

This is one of the complicated questions that don’t have a fixed answer. You can expect that the interchange plus plus rate to a low risk merchant would cost around .25% whereas for e-commerce transactions, it might go up to .35%.

Furthermore, even the smallest of changes in the variables can make a lot of difference in the rates. If the transaction fees offer the expense then the interchange plus plust rate might be 0%. To learn about the low and high risk merchants and how interchange plus plus rate applies to them; you can look into companies that provide merchant accounts.

Benefits of Interchange Plus Plus Rate

There are benefits of different kinds of payment models and interchange plus plus rate also has its own perks. If you are a high-risk business, you might be considering the IC++ rate especially because it can allow you to make the most out of the card payment.

  • The interchange plus plus rate is a payment model which is offering the most transparent payment system to the clients. The entire interchange fees will be shown to you so that nothing is missing or hidden.
  • There are various payment models but this is one of the cost-effective models since you will be paying for the most accurate pricing. Knowing what you are spending on the pricing model can help you optimize your services further.
  • The cost of the interchange plus plus rate is dependent on the markup set by you. And in the due time, you will also be able to save up unlike you get to when you are using the bundle pricing systems.

These are some advantages which do not come with the flat rate and the rest of pricing systems. There are no risks regarding held funds when you use the IC++ rate. When you start your business, especially now when most of enterprises have gone online, you can’t set up your store without the e-commerce transaction options.

Something that might be considered the negative sides of the interchange plus plus rate is the fact that it is designed for each business separately. Therefore, you might face prolonged periods of application process extending up to 48 hours. Moreover, when you start your new business, you might have a low volume which might not allow you to qualify for the interchange plus plus rate. However, if these few things are not a problem to you, you can apply and start enjoying the benefits.

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