Key takeaways
- Flat rate: one percentage on every card, easy to predict.
- Interchange-plus: the actual card cost plus a markup.
- Interchange varies by card type; premium rewards cards cost more.
- Growing businesses often save with interchange-plus.
How flat-rate pricing works
You pay one rate on every card payment. Stripe in Canada, for example, charges 2.9% + C$0.30 on domestic cards, plus 0.8% for international cards and 2% when currency conversion is needed.
How interchange-plus works
Every card payment has an interchange fee set by the card networks, which varies by card type. With interchange-plus, you pay that actual cost plus the processor’s markup. Helcim charges interchange + 0.50% + 25¢ online and interchange + 0.40% + 8¢ in person, with the markup falling as volume grows.
A worked example
On a C$10,000 online card payment, assuming an average interchange of 1.5%:
| Pricing | Fee |
|---|---|
| Flat rate (2.9% + C$0.30) | C$290.30 |
| Interchange-plus (1.5% + 0.50% + C$0.25) | C$200.25 |
Your real interchange depends on your customers’ cards, so ask for a statement analysis based on your actual card mix.
Which suits you
- Flat rate: new businesses, low volume, or teams that want predictable fees.
- Interchange-plus: growing volume, many debit or standard cards, or in-person sales.
- Bank debits: for recurring B2B invoices, debit providers like GoCardless can cost less than cards.
Providers that can help
Interchange-plus with no monthly fee
Flat 2.9% + C$0.30, strong SaaS tools
Recurring payments by bank debit
FAQs
What is interchange-plus pricing?
It’s a pricing model where you pay the card network’s actual interchange fee for each payment, plus a fixed markup from your processor. It shows the real cost of each card rather than one blended rate.
Is interchange-plus always cheaper than flat rate?
Not always. It often costs less as volume grows or when many customers use debit or standard cards, but premium rewards cards carry higher interchange. Compare using your own card mix.
Does Stripe offer interchange-plus?
Stripe’s standard Canadian pricing is a flat 2.9% + C$0.30 on domestic cards. Larger businesses can ask Stripe about custom pricing.
Who offers interchange-plus in Canada?
Helcim offers interchange-plus with no monthly fee, starting at interchange + 0.50% + 25¢ online and interchange + 0.40% + 8¢ in person.
Sources: Stripe and Helcim published Canadian pricing. Interchange example is illustrative.