Interchange-plus vs. flat-rate pricing: which is cheaper?
Interchange-plus is almost always cheaper and more transparent than flat-rate pricing for established businesses, because you pay the true cost of each card plus a small fixed markup instead of a padded blended rate. Flat-rate is simpler but you overpay on most transactions. Cash discount can beat both by offsetting the fee entirely.
Flat-rate pricing (like the big-name apps) charges one blended percentage on every sale — simple, but you overpay because the rate is padded to cover the processor's risk on every card type.
Interchange-plus passes through the real wholesale interchange cost of each card and adds a small, visible markup. You see exactly what you're paying, and for most businesses it's meaningfully cheaper than flat-rate.
The biggest saver, though, is a cash discount / dual pricing program, which offsets almost the entire processing cost at the register. Velocity will review a recent statement and show you exactly what each model would cost for your business — at no charge.
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