Free tool · settlement math
The flat-rate settlement trap
Headlines say interchange is getting cheaper. But whether you see any of that depends entirely on how your processor prices you — and for most small businesses on bundled flat-rate plans, the answer is: you won't. Not automatically.
How the pass-through actually works
Interchange is the wholesale cost
The card networks set interchange — the biggest slice of every card transaction's cost. Your processor adds its own markup on top. This is true for every plan, no matter how it's priced.
Flat-rate = bundled
A flat-rate processor charges one bundled percentage regardless of the underlying interchange. When wholesale interchange drops, your rate doesn't move — the difference widens your processor's margin, not your savings.
Interchange-plus = transparent
On interchange-plus, wholesale interchange passes through at cost with a fixed processor markup beside it. An interchange cut flows to you automatically, line by line, on your next statement.
That's the whole trap: the settlement lowers the wholesale cost. Only merchants whose pricing passes wholesale costs through will see it. Everyone else's processor keeps it — quietly, on every transaction, for five years. This is a general mechanic of bundled pricing, true of any flat-rate plan. And a reminder: the settlement isn't final, so treat the numbers below as what would happen, not what will.
What is the settlement worth to you?
Enter your monthly card volume and pricing model. The calculator applies the settlement's proposed 0.10-point (0.10%) interchange cut to your numbers.
How to check your statement
Don't guess — it takes one look at your monthly statement.
You're on flat-rate / bundled if…
Your statement shows a single percentage applied to nearly every transaction — something like "2.65% + 10¢" — with no breakdown of card types. One rate, one line, done. The simplicity is the point — and the trap.
You're on interchange-plus if…
Your statement itemizes interchange categories (standard, premium, commercial, foreign…) at their individual rates, with a separate processor markup line — often a small basis-point fee plus a per-transaction fee. More lines, more transparency.
Still can't tell?
That's exactly what the free audit is for. Send 3–6 months of statements and we'll tell you your pricing model, your true effective rate, and what's actually worth negotiating — at no cost and no obligation.
On flat-rate? This is what the audit fixes.
We renegotiate your pricing model or move you to one where wholesale cuts reach you. If there's nothing to find, you owe us nothing.
Start your free audit