Payment processing costs are typically made up of underlying card costs (interchange and network fees) plus a processor/ISO markup. Pricing models differ mainly in how transparently those costs are presented and how markups are applied.
Interchange-plus separates the underlying interchange costs from the processor’s markup. This structure is often used when transparency is a priority, especially for merchants with moderate to higher volume.
Flat-rate pricing uses a single percentage (and sometimes a per-transaction fee) regardless of card type. It can be simple to understand, but may be less cost-efficient for certain volumes or card mixes.
Tiered pricing groups transactions into categories (often “qualified/mid/non-qualified”) and applies different rates. It can make it harder to identify what drove total costs and to compare apples-to-apples.
Related: Interchange-plus explained, Comparison guide, FAQ
Compliance note: ClearRate Payments is not a bank. Payment processing services are provided through sponsoring banks and processing partners.