Pass Through Pricing

Also referred to as Cost Plus, True Pricing or Pass Through pricing, this pricing scheme is based on a mark-up or per-transaction fee charged by your processor over the Interchange Fee. The markup can take the form of a per-item fee on settled transactions, authorizations, or both, as well as a discount on settled transactions. Exact interchange fee, set by Visa, MasterCard and Discover “passes through” at cost. A merchant’s overall credit card processing cost is based on Pass Through Pricing is the sum of the product of the number of transactions that fall into each of the hundreds of Interchange categories multiplied by the effective processing rate (Interchange fee plus the mark-up) for that category.

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