Why Every Business Owner Should Switch to Interchange-Plus Pricing (and How to Spot Hidden Credit Card Processing Fees)
- Bradford Barry
- Jul 22
- 3 min read
If your business accepts credit cards, you’re likely losing money not from your customers, but from hidden fees baked into your credit card processing plan. Most businesses in Rochester are not set up on interchange-plus pricing, and that’s costing them hundreds or even thousands of dollars each month.
In this article, I’ll show you exactly what’s happening behind the scenes of your merchant statement, how processors hide fees, and how interchange-plus pricing can put that money back in your pocket. Plus, I’ll share real examples and show you how to book a free one-on-one review of your current setup.
What Are Interchange Fees?
Every time you accept a credit card, a portion of the transaction goes to the customer’s bank. This is called the interchange fee, and it’s the non-negotiable, “wholesale” cost of card acceptance.
📄 Visa publicly lists all interchange rates here:👉 Visa Interchange Rate Guide (PDF)
The key point?
All processors pay the same interchange fees. So, if you’re paying more than necessary, it’s because of the pricing model and markup your processor is adding on top.
Common Pricing Models: What You Need to Know
Here’s how most businesses are charged:
❌ Flat-Rate Pricing
You pay a fixed % for every transaction - often 2.9% + 30¢.
⚠️ Sounds simple, but it’s usually inflated to cover worst-case scenarios.
You’re overpaying on lower-cost debit and standard credit cards.
❌ Tiered Pricing
You’re promised a “low rate” for “Qualified” transactions (like 1.69%), but most cards fall into “Mid” or “Non-Qualified” tiers - often above 3%.
⚠️ Processors often bury how they classify each transaction.
What sounds like a deal becomes a ripoff.
✅ Interchange-Plus Pricing
This is the transparent model. You pay the actual interchange rate (set by Visa/MC/Discover/American Express) plus a fixed markup, like 0.15% + 05¢ per transaction.
✅ You can verify costs.
✅ You only pay what’s fair.
✅ No hidden padding.
How Processors Hide Fees
Processors know most merchants won’t analyze their statements line by line. That’s how sneaky charges happen.
Example 1: “Padded” Interchange
Your statement might say the interchange for a rewards card is 1.80%, but Visa lists it as 1.65%.
➡️ That 0.15% padding goes straight to the processor. You’d never notice unless you checked the official interchange tables - which most merchants don’t!
Example 2: Tiered Surprises
A business owner was told their rate was 1.69%, but over 90% of their transactions were marked “Non-Qualified” at 3.29%.
➡️ Result? Their effective rate was nearly double what they expected.
Why Interchange-Plus Saves You Money
Average savings: 20-30% monthly compared to flat or tiered rates
Transparent billing: You know exactly where your money goes
No surprises: No mystery fees or vague surcharges
Empowered decisions: You can adjust your business based on real data
This model works especially well for:
Retailers & restaurants
E-commerce businesses
B2B services & professionals
High-volume or high-ticket businesses
Let’s Talk Numbers
📊 A business processing $30,000/month at 2.9% flat rate pays $870 in fees.
📉 Switching to interchange-plus could bring that down to ~2.1% = $630.
✅ You just saved $240/month - that’s over $2,800/year.
Why Work With Barry Business Solutions?
🔍 I personally review statements line-by-line
💡 I explain your options in plain English
🎯 I focus on real savings, not confusing sales talk
💬 No pushy upsells - just real advice from someone who knows this industry inside and out
Let’s See What You’re Really Paying
If you’ve never had your processing statement reviewed, now’s the time.
I offer a free strategy session where I’ll analyze your setup and show you where you can save.
I also offer a free cost savings estimator you can input your current monthly volume and average transaction and see how much this could save you every month.
Best regards,
Bradford Barry
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