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Interchange Plus?

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Steve

Well-known member
Can anyone give an explanation of interchange plus? Currently talking with a few merchant processors and two of them are “interchange plus” one is offering me interchange plus 0% and 5 cents per swipe. Another one is offering interchange plus (not stating if there’s anything above 0 or not yet) and also 5 cents per swipe.

What exactly is it? If it’s interchange plus 0% it’s just interchange with no added percentage and 5 cents per swipe? Or am I completely off here.

Any help is greatly appreciated. Thanks everyone

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Steve,

Yes, if they are offering you interchange+0%+5 cents a swipe they technically aren’t marking up the interchange by adding a percent fee for themselves. For example, some processors will charge: interchange+0.33%+8 cents/swipe and that 0.33% is going directly to the processor in addition to the swipe fee. I would watch carefully that they wont be charging you any additional fees beyond that (PCI compliance fee/statement fee, etc). Interchange+0%+5 cents a swipe is pretty competitive rate from my research when looking into CC processors, good luck with your negotiations!
 
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0% +.05 is good. You can push for a penny more if you’re lucky or maybe even more if you do massive amounts of transactions?

Check for a total monthly summary quote to see all fees. 0% usually far outweighs most fees though if you do big numbers.
 
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I’m getting interchange plus 5 cents a swipe currently.

Processors make their money on batch fees, statement fees , pci compliance fees, annual fees, etc…

You have to check your statements from time to time. My last processor started padding the interchange fee on me so I fired them. After explaining that I was promised interchange plus rates from the beginning, they were very quick to match it. I told them sorry, your not trustworthy anymore.

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RobT said:
I’m getting interchange plus 5 cents a swipe currently.

Processors make their money on batch fees, statement fees , pci compliance fees, annual fees, etc…

You have to check your statements from time to time. My last processor started padding the interchange fee on me so I fired them. After explaining that I was promised interchange plus rates from the beginning, they were very quick to match it. I told them sorry, your not trustworthy anymore.

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How did you catch the padding? Anything specific to look for?

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noreason said:
0% +.05 is good. You can push for a penny more if you’re lucky or maybe even more if you do massive amounts of transactions?

Check for a total monthly summary quote to see all fees. 0% usually far outweighs most fees though if you do big numbers.
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Tough to say what would be a massive amount of transactions. We’re about 3000 swipes a month currently total between two locations. Paying 15 cents currently (just caught the bank charging us 15 instead of 10 like our contract states)

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Steve said:
How did you catch the padding? Anything specific to look for?

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Visa and MasterCard publish their interchange rates. When I started seeing a rate of 1.69% interchange go way over 2% that was enough for me.

I take my total fees per month and divide them by the monthly volume. If your paying over 3% , your getting ripped off. My current % ranges from 2.1%-2.3%. (This also depends on swipe and keyed in transactions) If you do a lot of keyed in transactions, your rate will be higher (more risk) . If you want , I can take a look at your statement and see if your getting ripped off.

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RobT said:
Visa and MasterCard publish their interchange rates. When I started seeing a rate of 1.69% interchange go way over 2% that was enough for me.

I take my total fees per month and divide them by the monthly volume. If your paying over 3% , your getting ripped off. My current % ranges from 2.1%-2.3%. (This also depends on swipe and keyed in transactions) If you do a lot of keyed in transactions, your rate will be higher (more risk) . If you want , I can take a look at your statement and see if your getting ripped off.

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Oh we most definitely are getting ripped off. After interchange and markup from the processor plus swipes we were 3.6%. Took too long to catch it. Most likely going to vantiv at 0% and 5 cents per swipe.

Met with a processor today “Wholesale Payment Solutions” I told them I wanted an offer today because I’m making a decision this weekend. She said I’d have a proposal on Monday. I told her if you want a shot at my business I’ll have an offer from you in the next hour (met at 3:30pm). She got her boss on the phone and they offered 1.8% plus 5 cents a swipe. Reiterated heartland and vantiv both are at 0% and 5 cents a swipe. He said well then I’d rather you go to one of them. I told him thanks for wasting my time and I’d mail them a bill for the hour they wasted!

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noreason said:
0% +.05 is good. You can push for a penny more if you’re lucky or maybe even more if you do massive amounts of transactions?

Check for a total monthly summary quote to see all fees. 0% usually far outweighs most fees though if you do big numbers.
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Had a goal in mind to get to 2 cents a swipe but it might not happen. Still gonna try for more but I’ve about had it for the year with these companies. Maybe try to go back after it next year

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Steve said:
Oh we most definitely are getting ripped off. After interchange and markup from the processor plus swipes we were 3.6%. Took too long to catch it. Most likely going to vantiv at 0% and 5 cents per swipe.

Met with a processor today “Wholesale Payment Solutions” I told them I wanted an offer today because I’m making a decision this weekend. She said I’d have a proposal on Monday. I told her if you want a shot at my business I’ll have an offer from you in the next hour (met at 3:30pm). She got her boss on the phone and they offered 1.8% plus 5 cents a swipe. Reiterated heartland and vantiv both are at 0% and 5 cents a swipe. He said well then I’d rather you go to one of them. I told him thanks for wasting my time and I’d mail them a bill for the hour they wasted!

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You know what you have to do. Dump them . If you do some serious volume, you can get the best rates in the industry. I complained that I did a lot of swipes under $10, so they gave me 5 cents a swipe. Make sure they disclose all fees (pci compliance, annual , etc)

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Closing the deal with Vantiv now. 0%, 3 cents per swipe. $24.95 monthly fee per location (I know it’s bull but these are the best rates anyone offered). They integrate into my POS. No batch fee, no statement, no set up fee, early termination fee waived if given 30 days notice. Still need to negotiate our gift cards with them, but the credit cards are off to a good start. Just thought I’d update you all

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Steve said:
Closing the deal with Vantiv now. 0%, 3 cents per swipe. $24.95 monthly fee per location (I know it’s bull but these are the best rates anyone offered). They integrate into my POS. No batch fee, no statement, no set up fee, early termination fee waived if given 30 days notice. Still need to negotiate our gift cards with them, but the credit cards are off to a good start. Just thought I’d update you all

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Hi, Steve. When you look at converting over your gift cards, ask about StoreCard: gift + rewards + mobile payments to build order frequency.
 
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Hi, Steve. When you look at converting over your gift cards, ask about StoreCard: gift + rewards + mobile payments to build order frequency.
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Could you elaborate on what that is?

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Steve said:
Could you elaborate on what that is?

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Sure. Instead of just a gift card, it’s a private label gift, rewards, and mobile payment card/app in one. Here is an intro package from Vantiv.
 
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