Card processing pricing models compared
Flat rate, interchange-plus, tiered, subscription and Interac debit pricing side by side by structure and fit, not by provider.
This table compares pricing structures, not providers. The same processor may offer several of these models, and two processors using the same model can produce very different monthly totals. Read each row as a description of how the bill is built, who that structure tends to fit, and what to check in the quote. No rates appear here because rates change and depend on your business; get them from current quotes and compare total dollars for the same month of sales with the card fee calculator.
Select a column header to sort.
| Pricing model | How the bill is built | Often a fit for | Watch out for |
|---|---|---|---|
| Flat (blended) rate | One percentage, sometimes plus a per-transaction fee, for all cards or for each payment method (in person, online, keyed) | New or small businesses with low volume that want a predictable, simple statement | You pay the same rate on low-cost debit and standard cards as on premium cards; the small business interchange reduction may not lower a flat rate |
| Interchange-plus (cost-plus) | Actual interchange and network fees passed through, plus a fixed processor markup (percentage and/or per-transaction amount) | Businesses with steady volume that want to see each layer and benefit directly from interchange reductions | Statements are longer; check the markup, monthly fixed fees and whether network fees are passed through at cost |
| Tiered (qualified, mid-qualified, non-qualified) | Transactions sorted into two or three rate buckets by card type and entry method | Rarely the clearest choice; sometimes offered to businesses with simple card mixes | The processor decides which cards fall in the expensive tiers; rewards, business and keyed cards often land in higher tiers |
| Subscription (membership) | A fixed monthly fee plus interchange and network fees at cost, often with a small per-transaction fee | Higher-volume businesses where the fixed fee is spread over many transactions | The monthly fee is payable in slow months; check the minimum term and what the fee includes |
| Interac debit pricing | Usually a flat fee per transaction regardless of the amount, separate from credit card pricing | Businesses where many customers pay by debit, especially with larger tickets | Some flat-rate plans charge debit as a percentage, which costs more on large tickets; ask for the debit fee separately |
| Online gateway pricing | Card-not-present rate plus gateway fees (monthly and/or per transaction), sometimes bundled | E-commerce, invoicing and subscription billing | Higher interchange and fraud risk online; check chargeback fees, fraud tools and payout timing |
| POS bundle (hardware + software + processing) | Monthly software fee and hardware price or rental tied to a specific processor | Retail and restaurants that want inventory, menus or staff features in one system | Switching processor may mean replacing the POS; check exit fees, data export and hardware ownership |
| Rented or leased terminal | Monthly rental from the processor, or a separate lease agreement with a leasing company | Businesses that want repairs and swaps included or cannot pay upfront | A separate lease can outlast the processing agreement and be non-cancellable; compare total payments with the purchase price |
How to read this table. No pricing model is cheapest in every case. Whether flat rate or interchange-plus costs less depends on your card mix, average ticket and volume. Compare quotes on the same sales month in dollars.
Rules that apply to every model. Under the revised Code of Conduct for the Payment Card Industry in Canada (in effect since 30 October 2024), you must receive notice 30 to 60 calendar days before a fee increase or new fee, and you may leave without penalty within 70 days of it taking effect. You can accept credit without debit, or debit without credit. Check the current text with the Financial Consumer Agency of Canada.
Verify. For surcharging rules, see the FCAC merchant pages. To check whether a non-bank payment service provider is registered, use the Bank of Canada registry under the Retail Payment Activities Act.