← Guide Home | Main Site

Pricing models compared

Pricing models differ in transparency and how costs appear on statements. The “best” model depends on volume, ticket size, card-present vs card-not-present, and how much the business values visibility and control.

Interchange-plus

• Pros: transparent, easier to validate effective rate, easier to compare offers
• Limitations: requires understanding statements; outcomes depend on card mix
• Often fits: merchants with moderate to high volume or those wanting visibility

Flat-rate

• Pros: simple headline pricing; predictable structure
• Limitations: may be less cost-efficient for certain volumes or card mixes
• Often fits: lower volume merchants prioritizing simplicity

Tiered

• Pros: can appear simple on the surface
• Limitations: less transparent; category shifts can be hard to predict
• Often fits: situations where transparency is not a priority (use caution)

Related: Effective rate, Pricing models, FAQ

Compliance note: ClearRate Payments is not a bank. Payment processing services are provided through sponsoring banks and processing partners.