What is Interchange+ pricing?

Managing your invoices and payments with Mallow gives you access to Interchange+ pricing (or "Cost Plus" pricing), a transparent pricing model where you pay the actual "wholesale" cost of the transaction instead of an inflated fixed-rate price.

With Interchange+ pricing, your costs are broken down into two clear parts:

1. The "Interchange"

This is the wholesale price set by the card networks (Visa, Mastercard, etc.). It is the exact amount it costs to move money from the customer’s bank to yours. This Interchange rate varies depending on the card type (e.g. basic debit card vs. standard credit card vs. premium rewards card). Learn more about Interchange.

2. The "Plus"

This is the service fee you pay to the processor for handling the transaction. It is typically a small percentage plus a fixed per-transaction fee (the "Plus" fee with Mallow is 0.30% + $0.30). Unlike the interchange rate, this markup stays the same regardless of which card your customer uses.

Why does Mallow use Interchange+ pricing?

• Savings For You: Because you pay the true cost for every card, you benefit from lower rates on low-cost transactions (like debit cards) rather than paying an inflate "flat rate" for every transaction.

• Total Transparency: You see exactly what the card networks charged versus what your processor earned. There are no hidden surcharges.

• Detailed Reporting: Your monthly statements will show a line-by-line breakdown of every fee, giving you a clear view of your processing expenses.

Looking for a quick overview? See Mallow's fee structure explained for a plain-English summary of card fees, ACH fees, and what Interchange+ means in practice.