CardConnect, Fort Worth

Interchange +, by CardConnect Fort Worth (BAS, LLC)

Interchange +, often referred to as interchange plus or cost plus, is a pricing model used by merchant service providers for credit card processing. With this model, the pricing is broken down into two main components: the interchange fee and the processor's markup.

The interchange fee is a non-negotiable cost set by the credit card networks (Visa, Mastercard, etc.) and it goes to the card-issuing banks. It varies based on factors such as type of card, type of transaction, and business type.

The second part of the cost in Interchange + pricing is the processor's markup. This is the fee that merchant services providers like CardConnect charge for their services, including customer support, technology, equipment, and more. This is the part of the cost that can vary from provider to provider.

CardConnect, as a merchant service provider, uses the Interchange + pricing model because it offers more transparency than other models, such as bundled or tiered pricing. With Interchange +, businesses can clearly see what they're paying in interchange fees and what's going to CardConnect as the processor's markup.

Moreover, CardConnect offers interchange optimization to help businesses qualify for the lowest possible interchange rates. By correctly structuring and submitting transaction data, CardConnect ensures that businesses can reduce their overall processing costs. This can be especially beneficial for B2B and B2G transactions, which can qualify for lower rates with more detailed transaction data.

To sum up, Interchange + by CardConnect is a pricing model for credit card processing that separates the non-negotiable interchange fees from the processor's markup, offering businesses greater transparency and potentially lower costs with interchange optimization.