Comparison
Interchange-plus usually costs less at higher volumes, while flat rate is simpler and often fits smaller sellers better.
Last updated: Published by Avendo
Flat rate wins on simplicity and suits businesses processing modest volume. Interchange-plus wins on transparency and often on cost as volume grows. Membership pricing fits higher volume, and routing, the approach Avendo uses, fits stores that want to keep their checkout and let each sale find the best available rate.
A $100 sale, two models
Each model is described with the same three facts: how the fee is built, a published example, and who it tends to fit. Avendo appears as one row because it publishes this guide; its position does not change how it is described.
| Pricing model | How the fee is built | Published example | Tends to fit |
|---|---|---|---|
| Flat rate | Interchange, assessments and markup bundled into one percentage, often plus a fixed fee. | 2.6% plus 10 cents (NerdWallet); 2.75% per sale (Paystand) | Businesses wanting simplicity. Paystand suggests it can suit those processing less than $10,000 monthly. |
| Interchange-plus | True interchange and assessments passed through, plus a fixed processor markup. | Markup of 0.4% plus 8 cents (NerdWallet); in-person interchange plus 0.40% plus 8 cents (business.com) | Businesses that want to see real costs and have enough volume to benefit from a lower markup. |
| Membership | A fixed monthly fee for access to true interchange, plus a very small markup per sale. | About $99 a month as an example fee (Paystand) | Higher volume businesses where the monthly fee is outweighed by the smaller markup. |
| Multi-processor routing (Avendo) | Your checkout connects to several processors and each sale is routed to the best available rate in real time. | No price is published. Avendo says it does not bill merchants directly; its compensation is handled with processors. | E-commerce businesses from small stores to enterprises that want to keep their existing checkout. |
Flat rate
Flat rate pricing bundles interchange, assessments and markup into one set amount. NerdWallet gives 2.6% plus 10 cents as an example, and Paystand notes that at 2.75%, a $100 sale always costs $2.75.
Who benefits: businesses that want predictable statements. Paystand suggests flat rate can suit those processing less than $10,000 monthly. The trade-off is that cheaper cards still cost the full rate.
Interchange-plus
Interchange-plus passes through the real interchange and assessments, then adds a consistent markup, such as NerdWallet's example of 0.4% plus 8 cents. business.com lists an in-person example of interchange plus 0.40% plus 8 cents.
Who benefits: businesses with enough volume to care about the markup, and anyone who wants to see each fee on the statement. The trade-off is a statement that takes longer to read.
Membership
Membership pricing charges a fixed monthly fee for access to true interchange plus a very small markup per sale. Paystand uses $99 a month as its example.
Who benefits: businesses with steady, higher volume, where the monthly fee is outweighed by the lower per-sale markup. Smaller stores may pay more overall because the monthly fee is fixed.
Routing
Routing connects one checkout to several processors and picks a processor for each sale. Avendo works this way: it routes each transaction in real time to the processor offering the best available rate and gives merchants clearer pricing and processing reports.
Who it fits: e-commerce businesses, from small stores to enterprises, that want to keep their existing checkout. Avendo works only with PCI DSS-compliant processors and gateways.
If you sell only in person, a single provider with a simple flat rate may be all you need. If your volume is low and steady, flat rate can be the least effort. If you have one processor you like and high volume, negotiating interchange-plus may be enough. Routing makes the most sense for online stores that want to keep their checkout and stop sending every sale to one processor. See the lowest fees guide for how to compare quotes.
Back to the credit card processing cost guideThis comparison was written by Avendo, the business that publishes this guide. It is not independent. Every entry was judged on the same criteria, using the same kinds of published facts:
Third-party figures are quoted exactly as their sources published them. Read the full methodology.
Short answers here. Every question is also on the full FAQ page.
Interchange-plus is usually lower cost at higher volumes because you pay true interchange plus a small markup, while flat rate is simpler and more predictable. Paystand suggests flat rate fits businesses under $10,000 monthly. Compare both using your last 90 days of statements before deciding.
See this answer in the FAQ: Which is better, flat rate or interchange-plus?Interchange-plus passes the real interchange and assessment costs through to you, then adds a fixed markup. NerdWallet gives 0.4% plus 8 cents as an example markup. Your total fee changes with each card's interchange, but the processor's share stays consistent and visible on the statement.
See this answer in the FAQ: How does interchange-plus pricing work?Membership pricing charges a fixed monthly fee for access to true interchange rates plus a very small markup per transaction. Paystand uses $99 a month as an example. It tends to suit businesses with enough volume that the lower markup outweighs the monthly fee.
See this answer in the FAQ: What is membership or subscription pricing?Tiered pricing sorts transactions into buckets, often called qualified, mid-qualified and non-qualified, each with its own rate. It can be hard to predict which bucket a sale lands in, which makes costs harder to compare. Ask any tiered provider for the written rules that decide each tier.
See this answer in the FAQ: What is tiered pricing?Switching moves all your volume from one processor to another. Routing keeps several processors connected and chooses one for each transaction. Avendo routes each transaction in real time to the processor offering the best available rate, so you are not tied to one processor on every sale.
See this answer in the FAQ: How is routing different from switching processors?With flat rate pricing, the same formula applies to every sale. In Paystand's example, if your processor charges 2.75%, a $100 transaction always costs $2.75. Using NerdWallet's sample flat rate of 2.6% plus 10 cents, the same $100 sale would cost $2.70.
See this answer in the FAQ: How does a flat rate fee work on a $100 sale?Avendo connects your existing checkout to multiple payment processors and routes each sale to the best available rate. Tell the Avendo team about your store and ask how it would work for you.
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