Is interchange-plus always cheaper than flat rate?

At low volume the difference is small and flat rate is simpler. Above roughly 10,000 USD per month, interchange-plus almost always wins.

Can I pass fees to customers?

Surcharging card payments is permitted in many US states and some other markets with disclosure and cap rules, and is prohibited in others. Check the rules for your jurisdiction and card network before enabling it.

Merchants guide

Payment processing fees explained

Break a merchant statement into interchange, network assessments and processor markup, then calculate your effective rate and find the money you are leaving on the table.

11 min read · Updated 2026-07-14 · TotalRemit.ai editorial team

The three components of every card fee

Interchange goes to the card-issuing bank and is set by the networks. It is non-negotiable, but it varies enormously by card type, transaction channel and the data you submit. Assessments go to Visa, Mastercard and the other networks and are a small fixed percentage. Markup is what your processor keeps, and it is the only part anyone can negotiate.

When a provider quotes you 'one simple rate', they are blending all three and absorbing the variance. That is convenient and almost always more expensive at volume, because you pay the blended rate on cheap debit transactions as well as expensive rewards-card transactions.

Calculate your effective rate first

Divide total fees for the month by total card volume for the month. That single number — your effective rate — is the only meaningful benchmark, and it is the number to compare across providers.

A card-present retailer with mostly debit volume should expect an effective rate well under 2%. A card-not-present business selling to consumers on rewards cards will run higher. If your effective rate is above 3.5% and you are not in a high-risk category, you are almost certainly overpaying.

Reduce interchange with better data

Interchange qualification depends on the data you send. Passing Level 2 and Level 3 data — tax amount, customer code, line-item detail — can move commercial and corporate card transactions into materially cheaper interchange categories. For B2B merchants this is often the single largest available saving.

Other qualification levers: authorise and settle for the same amount, settle within the network's window, use AVS and CVV on card-not-present transactions, and avoid forced or voice authorisations.

Watch the line items that are not the rate

Statement fees, PCI non-compliance fees, batch fees, gateway fees, monthly minimums, chargeback fees and early-termination clauses can add more than the rate difference between two providers. Ask for the full fee schedule in writing, not just the headline rate.

TotalRemit.ai prices on interchange-plus, itemises every pass-through cost, and does not charge separately for the virtual terminal, invoicing, payment links or the customer vault.

FAQ

Questions this guide gets asked.

Under 2% for card-present retail with heavy debit mix; 2.3-2.9% is typical for consumer e-commerce. Above 3.5% outside high-risk categories usually indicates overpayment.