Short answer: A flat rate is simpler and predictable. Interchange-plus is usually cheaper once you process meaningful volume or take a lot of debit — because you pay the card networks’ actual cost plus a small, fixed markup instead of a bundled percentage.
What every card payment actually costs
Every credit card sale carries three layers of cost:
- Interchange — paid to the bank that issued the card. It varies by card type: a premium rewards card costs more to accept than a basic one.
- Assessment — a smaller fee charged by the card network itself.
- Processor markup — what your provider charges on top. This is the only part that is really negotiable.
A flat rate bundles all three into one percentage. Interchange-plus shows each layer separately.
Flat rate: what you get
On our Fixed plan, every credit sale costs 2.50% and every debit sale costs 0.75% + $0.07, with no monthly fee. You always know what a sale will cost. The trade-off: the rate has to cover expensive premium cards too, so on cheaper cards you pay more than the true cost.
Interchange-plus: what you get
On our Variable plan, credit costs interchange + assessment + 0.20%, and Interac debit is a flat $0.05 per transaction, again with no monthly fee. Your statement shows the real network cost of each card type, so you can see exactly where every cent goes.
A worked example
A Toronto business processing $25,000 a month, average sale $35, 70% paid by credit (about 714 transactions). Assume interchange plus assessment averages 1.40% — it varies with your card mix.
| Plan | Monthly cost | Effective rate |
|---|---|---|
| Fixed (flat rate) | ≈ $508.75 | 2.04% |
| Variable (interchange-plus) | ≈ $290.71 | 1.16% |
The biggest driver of that gap is debit. On a flat rate, a $35 debit sale costs about $0.33; on interchange-plus it costs $0.05. If your customers tap debit a lot, interchange-plus wins quickly. Try your own numbers in the calculator.
Which should you choose?
- Choose flat rate if you’re small, new to taking cards, or want the simplest possible statement.
- Choose interchange-plus if you process steady volume, have a high share of debit, or want full transparency.
- Consider a surcharge program if you want card fees off your books — see our surcharging guide.
Watch for these on any statement
Monthly minimums, PCI fees, “non-qualified” surcharges and terminal rentals can quietly double the cost of a low headline rate. Our three plans carry no monthly fee. If you are not sure what you are paying today, ask us for a quote — we’ll explain it line by line on the phone.