Know what you’re really paying—and why it matters.
3-Tiered vs Interchange Plus Pricing
Most merchants are on outdated 3-tiered pricing. At CoCard, we offer Interchange Plus: transparent, cost-based, and built to save you money.
Pricing Models Comparison
3-Tiered Pricing
- Groups transactions into only 3 categories: Qualified, Mid-Qualified, Non-Qualified
- You’re charged based on how the card is used (swiped, keyed, rewards)
- Higher fees for business, rewards, and international cards
- No visibility into what you’re actually paying for
Interchange Plus Pricing
- Transparent pricing based on the real cost of each transaction
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You pay what Visa/MasterCard charges, plus a small flat markup
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You can see exactly what you’re paying for
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Often cheaper over time for most businesses
Surcharging/Dual VS Hybrid Pricing
Surcharging/ Dual Pricing
Surcharging and dual pricing are essentially the same—once called surcharging, it’s now commonly referred to as dual pricing: one price for cash, another for credit.
This approach helps merchants offset processing costs by passing them to the cardholder, while still remaining compliant with regulations.
Many businesses now use dual pricing to protect profit margins without raising base prices.
Hybrid Pricing
Applies a small, visible fee (e.g., “$1 per transaction”) that helps you subsidize your costs while keeping pricing clear and upfront for your customers.
A great option for merchants who want a balance between covering fees and maintaining customer trust.