Understanding Interchange Plus Plus Rate

Payments through the credit card or debit card can be quite convenient in the world of online business. Since it is so easy and quick, more customers will naturally be attracted to purchase your services. On the other hand, it can be difficult for you because when credit card is processed, it can cost you money. You will need even more of money for maintaining your merchant account. It can easily translate as less profit for you as well.

However, you can’t avoid using credit cards and debit cards anymore. So, you have the interchange plus plush rate which can taking care of your fears of the high cost applied to the transactions made with credit cards and debit cards: interchange plus plus rate.

Interchange Plus Plus (IC++) Fee Structure

Many of the merchant account providers in the US/UK are offering the Interchange Plus Plus rate structure. This is a pricing model which charges the merchant for each transaction made with the credit card. The rate model is dependent on three important factors which make it the perfect choice for owners of merchant accounts.

The first factor is the interchange percentage fee. In addition to that, there is also a card scheme fee which is added to the interchange percentage fee accompanied by a card scheme fee. And finally, an amount of fixed percentage is also added by account provider.

The Interchange Plus Plus rate is useful for many reasons but many merchants prefer it because of the transparency.

How Does IC++ Work

The interchange plus plus rate works by applied a fixed interchange fees to MasterCard, Discover or Visa. It might show up in two forms: either as points or as authorization fee. There are a few other things which might also impact the way things work such as the type of card which you are using or the processing method of the card. These are the determiners for the interchange categories which are later applied to the final amount being charged.

Should I Get Interchange Plus Plus Rate?

At the moment, the interchange plus plus rate is being adopted by many of the merchants who believe that is transparent. Moreover, it is hailed as a pricing system for transactions that costs low compared to the other pricing models. These two are the main reasons for you to consider switching to the interchange plus plus rate.

Because it passes interchange fees to the merchants directly, it can eliminate the changes of surcharges and hidden costs which can be expensive. However, one mistake to avoid when you are considering interchange plus plus rate is to think of it as a solution. If you are looking for something that will completely take care of the credit card processing fees, you should not rely on it completely. It is true that it has the potential to help you out and give you the boost you may be looking for. However, it will not dramatically decrease the fees of processing credit and debit card.