Merchant Pricing Comparison
Compare caller-supplied interchange-plus and blended merchant-pricing terms.
Description
Interchange-plus pricing separates interchange/markup from transaction charges; blended pricing uses one volume percentage in this model.
Interchange-plus pricing separates interchange/markup from transaction charges; blended pricing uses one volume percentage in this model.1
Compare caller-supplied interchange-plus and blended merchant-pricing terms.
When to use Merchant Pricing Comparison
Use this tool to compare caller-supplied interchange-plus and blended merchant-pricing terms.
Prepare the supplied account terms, common-currency amounts or recorded indicators requested. Determine applicable thresholds separately.
How to use Merchant Pricing Comparison and understand its results
- Prepare the supplied account terms, common-currency amounts or recorded indicators requested. Determine applicable thresholds separately.
- Enter monthlyVolume, transactionCount, interchangePercent, markupPercent, perTransactionFee, blendedPercent using the field table and calculation rules, then run the tool.
- Read interchangePlusCost, blendedCost, lowerCostModel. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| monthlyVolume | Monthly card volume (currency/month) | number; minimum: 0 | Required |
| transactionCount | Transaction count | integer; minimum: 0 | Required |
| interchangePercent | Interchange cost (%) | number; minimum: 0 | Required |
| markupPercent | Markup (%) | number; minimum: 0 | Required |
| perTransactionFee | Per-transaction fee (currency) | number; minimum: 0 | Required |
| blendedPercent | Blended price (%) | number; minimum: 0 | Required |
Enter nonnegative amounts/rates and integer count; return modeled costs and lower model, with exact equality tie.
plus=volume(interchange%+markup%)/100+count×fee; blended=volume×blended%/100 Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| interchangePlusCost | Interchange-plus cost (currency) | number; minimum: 0 |
| blendedCost | Blended cost (currency) | number; minimum: 0 |
| lowerCostModel | Lower-cost model | string; one of "interchange-plus", "blended", "tie" |
{
"input": {
"monthlyVolume": 100000,
"transactionCount": 1000,
"interchangePercent": 1.8,
"markupPercent": 0.3,
"perTransactionFee": 0.1,
"blendedPercent": 2.4
},
"output": {
"interchangePlusCost": 2200,
"blendedCost": 2400,
"lowerCostModel": "interchange-plus"
}
}Limitations and assumptions
No processor quote, fee tiers, chargebacks or taxes are fetched. Use a common currency/time basis.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Deposit Account Comparison: Compare two deposit accounts from balances, disclosed APYs, and annual fees. For a complementary task, use Debt Consolidation Breakeven: Calculate monthly savings and fee break-even time for a consolidation scenario.
References
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Merchant Pricing Comparison — tool.io
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