Interchange Cost Plus - Transparent but Confusing?

So many numbers! 

Remember we've defined interchange - simple.  Then we moved on to interchange cost plus pricing - also referred to as "pass through" or even wholesale pricing.  This model of pricing credit card transactions remember - passes on the true wholesale cost of the transaction to the merchant - you can see it.  It would be like seeing how much that Dell computer cost Best Buy - now you know the markup. Pretty sweet.

Merchants seem to be troubled by the fact though, that Visa and MasterCard have upwards of 150 or more different interchange rates based on how the credit card is processed, risk, type of card, type of business, etc. 

We ask you to keep in mind however, that certainly most merchants do not encounter this many different interchange rates on their monthly statement.  In fact the average merchant may see only 8-10 different interchange rates on their typical monthly statement from their payment processor.  Not all that different from a statement with tiered pricing - just less costly!

Very clear cut really.  Very dependable.  The most cost effective, transparent pricing model in the industry, recommended by merchant advocates everywhere.  

Comments

There are no comments yet.

Leave a Comment

XBS Global - Process Profitably.