Breaking Down the Costs of Payment Processing: What You’re Really Paying For

Every card swipe comes with processing fees. Learn where that money goes, the difference between flat-rate and interchange-plus pricing, and how Kulturra helps you keep more revenue in Salesforce.

Every time a customer swipes a card, taps their phone, or pays online, your business pays a processing fee. But do you actually know where that money goes?

Let’s break down what you’re really paying for and how to avoid leaving money on the table.

Who Gets a Cut of Every Payment?

Whenever you accept a payment, multiple players take their share:

The customer’s bank (interchange fee)
The card network (Visa, Mastercard, Amex, etc.)
Your payment provider (Stripe, PayPal, Square, etc.)

Together, these add up to your processing fee, typically a percentage of the sale plus a flat amount.

Flat-Rate vs. Interchange-Plus Pricing

Not all providers price the same way. Two main models dominate the industry:

1. Flat-Rate Pricing

The same fee for every transaction, regardless of card type.

Example: 2.9% + 30¢ per transaction

✔️ Easy to understand

❌ Can be more expensive long-term

Popular with: Stripe (default), PayPal, Square, Shopify Payments

2. Interchange-Plus Pricing

Breaks out the true cost of each transaction:

Example: 1.8% (interchange) + 0.1% (network) + 0.3% (markup) = 2.2%

✔️ Transparent and often cheaper for higher volume

❌ A little more complex to read on statements

Popular with: most traditional merchant service providers

Why Fees Vary

Not all transactions cost the same. Fees change based on:

Card type: Rewards and business cards = higher fees; debit = lower fees
Transaction method: In-person card-present = cheaper; online = higher risk, higher fees
Industry risk: Some industries (like travel or CBD) face higher rates
Chargeback history: Too many disputes = penalties

Choosing What’s Right for Your Business

Flat-rate pricing works well for simplicity and predictability.

Interchange-plus is better if you:

Process a high volume of payments
Accept lots of debit cards
Want more transparency into costs

At Kulturra, we help Salesforce teams pick the right approach, avoid hidden fees, and connect the right merchant services provider directly into their CRM.