Interchange Pass Thru Plus Pricing: 

This pricing program prices each transaction at its base cost then adds the processing mark-up.  With over 160 categories a single transaction can bucket into, this pricing program assures the greatest flexibility in processing venues, and the most accurate lowest per transaction cost versus the standard averaged costing methods traditionally used.  Interchange pricing is the pricing method of choice traditionally reserved for high transaction volume merchants, processing extremely high monthly volumes; accepting many types of bankcards, and originating from several card issuing banks. This program is also best for B2B merchants excepting 90% corporate, commercial, purchasing, or government cards. The reconciliation process may be more complicated in that there will be no set flat rate for each transaction.  Monthly transactions are documented in great detail, but depending on the type of cards the merchant is accepting, (i.e. Commercial, Corporate vs. Consumer or Rewards) a interchange pass thru account could yield significant monthly savings in transaction cost, only recognizable by high transaction volume.  The lower the transaction volume, the higher the basis point mark-up on the account, which could result in a higher cost that a breakout or flat rate pricing. Annual interchange rate increases do not significantly affect this program, because the increases do not affect every category.

Breakout Rate Pricing:

This pricing program prices each transaction by the basic card type categories.  They are non PIN debit check cards, credit cards, reward cards,  and commercial cards. These categories are cross bucketed into transaction types as well. Those transaction types are called qualified, mid or partially qualified, and non-qualified transactions. Depending on the processor, the merchant will have 3 to 12 different rates for Visa, MasterCard and Discover Cards in all the available categories the processor offers. Each card brand can have a different applicable rate for the card and transaction type categories.  It is excellent pricing for most merchants. It better prices each transaction than a standard flat rate pricing account when the merchant processes several hundred transactions a month. It’s an excellent pricing program for merchants accepting 90% consumer check cards, and credit cards.  The breakout of the category rates allows for easy reconciliation, and understanding of the transaction cost on the monthly statement. Annual interchange rate increases may affect some rates and not others when a merchant account is established on this pricing program. There are 3 categories of Breakout rates for Card-Present, and only 2 for Card-Not-Present.

Flat Rate Pricing:

This is the most traditional pricing program.  It usually states the qualified credit card rate. Although the mid or partially qualified, and non-qualified rates apply, the merchant is normally focused on the basic consumer qualified credit card rate only. It is important for the merchant to get full disclosure of what the mid, partial and non qualified rates or surcharges are on the account. If a really low qualified flat rate is stated, the merchant should make sure it applies to credit cards, and not non-PIN debit check cards. This pricing program is acceptable for low processing merchants of any type that accept 100% consumer credit cards. This pricing program is the easiest to understand, and reconcile with regards to transaction cost on your monthly statement. It is still very popular, and the most widely marketed to date. Asking for additional rate detail and fine print in this pricing program is the key to making sure it’s the best fit for a merchant. Annual interchange rate increases are often applicable to this program, because there is only one rate per category.
There are 3 categories of Flat rates for Card-Present, and only 2 for Card-Not-Present.

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