Below is a simple example which illustrates how interchange plus pricing often results in lower processing costs than discount pricing. This example assumes a $200.00 transaction involving a Visa check card (debit card) for an e-commerce merchant.

We assume that the transaction qualifies for the lowest interchange rate for Visa debit cards which is 0.05% + $0.22% (regulated debit).  We assume that this transaction would be processed at the qualified rate in the case of discount pricing.

  Interchange Plus Pricing
Discount Pricing
Pricing Assumptions
Interchange + 30bp (0.3%) + $0.10
1.99% qualified discount rate + $0.20
Merchant Receives
Total Transaction Costs $1.26

View Calculation Details

View Calculation Details


The merchant who has interchange plus pricing in this example pays $1.26 in total processing fees for the $200 transaction.  The merchant with tiered or discount pricing pays $4.18 for the same transaction.   As you can see, overall pricing costs are usually much higher with tiered or discount pricing.