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How processing pricing works

No jargon. Here is what you’re paying for, why Interac shouldn’t be priced like a credit card, and the fees worth watching on any statement.

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Interac is the piece most businesses miss

  • A huge share of transactions are Interac debit.
  • Interac generally costs far less to accept than a Visa or Mastercard credit card. That’s a good thing, as long as your pricing reflects it.
  • The trap: many flat-rate apps charge you one rate on everything, so your cheap Interac taps get billed at a credit-card rate.
  • On a debit-heavy business, that’s real money lost every day.
  • The first thing we check on your statement is whether Interac is priced like Interac.

How interchange-plus works

  • Every card has a base cost set by the card brands, called interchange. Nobody can lower it.
  • What a processor adds on top is the markup. That’s the part you can compare.
  • Interchange-plus shows both numbers.
  • It prices Interac and credit separately, so nothing is hidden or blended.
Our markup One fixed, visible number Card brands’ cost (interchange) Set by the card brands Interac priced on its own added on top passed straight through Your cost per sale Markup Interchange What you pay Both lines appear on your statement
Interchange-plus in one picture: the card brands’ cost passes straight through, with Interac priced as Interac, and one fixed markup sits on top. Together they’re what you pay. Illustration, not to scale.

The fees worth watching on a statement

  • Interac billed at credit ratesThe most common and most expensive Canadian mistake.
  • Non-qualified downgradesTransactions pushed into higher tiers than you were quoted.
  • Statement, batch, and PCI feesSmall recurring charges that add up. Often avoidable.
  • Equipment leaseLeasing a terminal usually costs far more than buying it.
What a processing fee is made of: a statement whose left side is a to-scale bar A stylized merchant statement with four fee lines. Down its left side runs a slim bar split to scale, and each fee line sits in a band as tall as its share of the total. Interchange and card-brand assessments 1.81%, pass-through, same with every processor, the tallest band. Processor markup 0.62%, the part you compare. Non-qualified downgrades 0.71% and monthly junk fees 0.28%, both flagged avoidable. Effective rate 3.42%; with the two flagged lines removed, 2.43%. Side cards group the lines into same everywhere, compare this, and remove these. Processing fee summary Each line as a share of card sales, so the lines add up. EXAMPLE STATEMENT REVIEW TO SCALE RATE Interchange and card-brand assessments Set by the banks and card brands. Same with every processor. 1.81% Interchange, set by the bank that issued the card Assessments, set by the card brands Processor markup What the processor adds on top. The only line that varies between providers. 0.62% "Non-qualified" downgrades AVOIDABLE An advertised low rate that quietly jumps on most of your transactions. 0.71% Monthly junk fees AVOIDABLE Statement, PCI, batch and other padding. 0.28% Effective rate What you actually pay on every dollar, once every fee is counted. 3.42% With the two flagged lines removed 2.43% Hold your own statement next to this. The bar down the left side is to scale: the taller the band, the bigger the cost. SAME EVERYWHERE Pass-through, set by the banks and card brands. No processor can lower this line. COMPARE THIS The one line that differs between providers. Ask for it in writing. REMOVE THESE Not bank costs. A statement review shows which of these can come off, and the total drops with them. Numbers from the example statement review on allpropay.com. Illustration, not a quote. Same with every processor The part you compare Flagged, avoidable or padded

Frequently asked questions

How should Interac debit be priced?
Interac debit generally costs far less than a Visa or Mastercard credit transaction. On a transparent setup it is priced on its own, not lumped in at a credit-card rate. Flat-rate apps that charge the same rate on everything overcharge you on Interac.
What is interchange-plus pricing?
It passes the card-brand cost straight to you and adds a small, fixed markup you can see. For Canadian businesses with a lot of Interac, it is the clearest way to make sure debit isn’t priced like credit.
Can I surcharge in Canada?
In most provinces you can surcharge credit cards up to 2.4 percent, with notice, signage, and disclosure. Not in Quebec, and never on Interac debit. See our surcharge checker.
Are there contracts or cancellation fees?
No. The Code of Conduct for the Payment Card Industry in Canada also protects your right to clear pricing and fair cancellation terms.

See it on your own statement

The fastest way to understand your pricing, Interac and credit, is to go over your statement with us. Free, no pressure.

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