Interchange-plus vs flat rate vs tiered pricing
| Model | How it works | Spot it on a statement |
|---|---|---|
| Flat rate | One rate for most cards (e.g., Square in-person 2.6% + 15¢ on Square Free) | Same % on every line |
| Tiered | Cards grouped into qualified / mid-qualified / non-qualified; processor decides the tier | Words "qualified", "mid-qual", "non-qual" |
| Interchange-plus | Actual interchange + network assessments + a disclosed processor markup | Interchange by card type, separate assessments and markup lines |
When each fits: flat rate is simple and often best at low volume; interchange-plus is more transparent and usually cheaper once volume is steady, and its markup is negotiable; tiered pricing is the least transparent because rewards, keyed and online cards are often pushed into higher tiers.
Whatever the model, compare on effective rate using a real statement.
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FAQ
Is interchange-plus always cheaper?
Not always. It's usually better at steady volume or with many debit cards; at low volume, a flat rate with no monthly fees can cost less.Can I negotiate interchange?
No. Interchange is set by the card networks. The processor's markup and add-on fees are what you can negotiate.How do I know if I'm on tiered pricing?
Look for 'qualified', 'mid-qualified' or 'non-qualified' on your statement.Related
Effective rate guide · PCI non-compliance fee · Fiserv / Clover · TSYS · Elavon
Sources
- Stripe: Credit card terminal rates explained
- Paysafe: Understanding interchange plus pricing
- Pine Payments: Flat vs tiered vs IC+
- Square: fees
Last reviewed Oct 2026. Statement layouts change; your statement may differ. Not legal or financial advice.