Interchange Plus Credit Card Processing

Understanding Interchange Plus Credit Card Processing for Restaurant Business Owners

Hello friends! Are you a restaurant owner? Are you looking for the best credit card processing solution that suits your business? Then you’re in the right place. In this article, we’ll discuss everything you need to know about interchange plus credit card processing for your restaurant business.

What is Interchange Plus Pricing?

Interchange plus pricing is a credit card processing system where the processor charges the merchant the actual interchange fee charged by the card-issuing bank, plus a markup percentage for payment processing. This system is known as “cost plus pricing” and is a transparent and predictable pricing method for merchants.

Interchange fees are the fees that credit card processing companies have to pay to card-issuing banks. These fees are not fixed and vary depending on the type of card, transaction method, and other factors.

How Interchange Plus Pricing Works for Restaurants

For restaurants, interchange plus pricing can be a great option because it allows for more transparency and control over credit card processing costs. With interchange plus pricing, you’re only paying a markup percentage over actual interchange fees.

Here’s an example: Let’s say a customer pays a $100 bill with a credit card. The interchange fee for the transaction is 2%. The processor will charge you 2% (which is $2) plus a markup percentage of, let’s say, 0.2%. So, the total cost of the transaction will be $2.20.

This system allows you to see exactly what you’re paying for, and you can compare pricing across different processors easily.

Benefits of Interchange Plus Pricing for Restaurants

There are several benefits of interchange plus pricing for restaurant business owners. Here are some of them:

  • Transparency: You know exactly what you’re paying for, and you can compare pricing across different processors easily.
  • Lower cost: Interchange plus pricing tends to be lower in cost than flat-rate pricing. If you’re a high-volume restaurant, you could save a lot of money.
  • Flexibility: With interchange plus pricing, you can negotiate the markup percentage with your processor. This gives you more control over your costs.
  • Less risk: Since interchange fees are actual costs, you’re not paying any markup on top of what the card-issuing bank charges. This means there’s less risk for you.

Drawbacks of Interchange Plus Pricing for Restaurants

While there are many benefits to interchange plus pricing, there are some drawbacks that you should consider as well. Here are some of them:

  • Complicated: Interchange plus pricing can be more complicated to understand and calculate compared to flat-rate pricing.
  • Not suitable for low-volume restaurants: If you’re a low-volume restaurant, interchange plus pricing might not be the best option for you since the markup percentage might be higher.
  • Higher processing fees during peak seasons: Since interchange fees can vary, you might end up paying more during peak seasons when interchange fees are higher.

How to Choose the Right Payment Processor for your Restaurant Business

When choosing a payment processor for your restaurant business, there are several factors to consider. Here are some of them:

  1. Pricing: You need to look for a processor that offers fair and transparent pricing. Interchange plus pricing is usually the best option for most restaurants.
  2. Customer support: Your processor should have reliable customer support that you can reach out to in case you encounter any issues or problems.
  3. Security: Your processor should have high-level security measures in place to protect your customers’ payment information.
  4. Integration: Your processor should be able to integrate with your POS system and other software that you’re using in your restaurant smoothly.
  5. Speed: Your processor should provide fast transaction processing so that your customers don’t have to wait too long to complete their payments.
  6. Reporting: Your processor should provide clear and detailed reports, so you can keep track of your payment history and identify any issues or discrepancies.


In conclusion, interchange plus pricing is a transparent and predictable pricing method for restaurant business owners who want more control over their credit card processing costs. While there are some drawbacks to this method, the benefits outweigh them in most cases. When choosing a payment processor, make sure to consider pricing, customer support, security, integration, speed, and reporting. With the right payment processor, you can streamline your payment processing and provide a great customer experience. Thank you for reading, and see you in the next article!

Interchange Plus Credit Card Processing

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