Payment processing pricing models can be incredibly confusing. Interchange plus is often touted as the most transparent option, but is it actually cheaper for YOUR business? Let's break it down in plain English.
With interchange plus, you pay the actual card network rate (interchange) plus a fixed markup. For example: 1.65% interchange + 0.30% markup = 1.95% total. The markup stays constant; interchange varies by card type.
Calculate your current effective rate: Total fees ÷ Total processing volume. Compare this to what you'd pay with interchange plus. For most businesses processing over $10k/month, interchange plus is cheaper.
Contact your processor and ask about switching to interchange plus. If they don't offer it, get quotes from processors who do. Aim for markups of 0.20-0.40% plus $0.05-0.10 per transaction.
With interchange plus, review monthly statements to ensure you're being passed true interchange rates without hidden markups. Some processors pad interchange rates before adding their markup.
| Feature | Clover | CapClover |
|---|---|---|
| Customer Support | ✗ Long hold times, unresponsive | ✓ Your assigned rep's direct line |
| Business Funding | ✗ Limited or no options | ✓ Up to $500,000 |
| Approval Time | ✗ Weeks or denied | ✓ Same-day decisions |
| Hidden Fees | ✗ Frequently reported | ✓ Transparent pricing |
| Contract Terms | ✗ Early termination fees | ✓ Flexible terms |
Get business funding up to $500,000 with your own dedicated rep - this is their direct line, not a call center.