Interchange Plus pricing, in plain English.

What Interchange Plus actually is

Interchange Plus — usually shortened to IC+ — is a way of pricing credit card processing where you pay two things, separately and clearly. First, the actual interchange rate set by Visa and Mastercard for each transaction. Second, a fixed markup on top, which is the processor's profit.

That's the whole model. Cost + markup. Like a wholesaler selling you flour for $0.50 a kilo and charging $0.10 on top. You see the wholesale price. You see the markup. You see the total. Nothing hidden.

Compare that to flat-rate models like Square or Stripe — where you pay 2.65% or 2.7% on every single transaction regardless of whether the underlying cost was 0.4% or 2.2%. The processor pockets the difference. You never see the actual cost.

Dough's standard IC+ pricing is interchange plus 0.20%, with $0.04 per debit transaction. The markup may vary slightly based on your industry and risk profile — but it's always disclosed upfront and locked in your processing agreement. See all three Dough pricing models →

What "interchange" even means

Before you can understand IC+, you need to know what interchange is. Most merchants on flat-rate pricing have never heard the word — by design.

Every time a credit card gets used, the bank that issued that card charges a fee for the transaction. That fee is interchange. It's set by Visa and Mastercard, it varies by card type, and it goes to the issuing bank — not the processor.

Why interchange varies so much

A basic consumer debit card might have an interchange rate of 0.40%. A premium rewards Visa Infinite card can run 1.80% or higher. A corporate purchasing card can hit 2.20%. The rate reflects what the bank thinks the transaction is worth — rewards cards need to fund the points, corporate cards need to fund the float, basic debit cards are cheap because the bank's risk is near zero.

Here's a rough breakdown of Canadian interchange rates as of 2026:

Interchange is the same regardless of which processor you use. Square pays the same interchange as Dough as Moneris as Stripe. The difference between processors is the markup they take on top — and how transparently they show it.

IC+ vs flat-rate pricing

Flat-rate pricing — the model used by Square, Stripe, and most newer processors — charges a single percentage on every transaction. Same rate for basic debit. Same rate for premium rewards credit. Same rate for corporate cards. Simple to understand. Expensive for most merchants.

The simple math on why flat-rate is more expensive

Take a typical Canadian small business with a mixed card volume of $30,000 a month. Roughly 30% of that volume is debit, 50% is standard credit, 20% is premium rewards credit. Under Square's flat 2.65%, you'd pay $795 a month in fees.

Under Dough's IC+ pricing on the same volume? The blended interchange cost is roughly 1.15% — about $345. Add Dough's 0.20% markup ($60) and $0.04 per debit transaction (roughly $9 across ~225 debit transactions) and your total is about $414.

That's about $4,600 a year. The gap gets wider as your volume grows — IC+ scales better because the markup stays fixed while the interchange portion is your actual cost. Flat-rate scales worse because the spread is baked into every transaction.

For a full Square breakdown specifically, read Dough vs Square.

IC+ vs tiered pricing

Tiered pricing is what most of the big bank processors quote — Moneris, Chase, TD, Global. It groups your transactions into "qualified," "mid-qualified," and "non-qualified" buckets — each with its own rate. The processor decides which bucket each transaction goes into. The merchant has no visibility.

The "qualified" rate is the headline number used to win the deal. "Just 1.65%!" they say. What they don't say — most of your transactions won't qualify. A rewards card automatically downgrades to mid-qualified. A corporate card downgrades to non-qualified. Each downgrade adds 0.5% to 1.0% to the rate. Your effective rate ends up nowhere near the quoted 1.65%.

This is the most common complaint in our merchant statement guide — merchants quoted a low rate, then paying a much higher effective rate once the downgrades start. IC+ eliminates the whole game. There are no tiers. The rate is the rate.

The math: how IC+ saves you money

The savings depend on three things — your total volume, your card mix, and what you're paying now. Let's run real numbers across three typical Canadian businesses.

Professional services firm — $40K/month, mostly invoice payments

A law firm or accounting practice processes $40,000 a month, mostly large invoice payments via credit card. Card mix is heavy on corporate and rewards cards — about 60% — because business clients pay business invoices with business cards.

Auto repair shop — $50K/month, mix of consumer cards

An auto repair shop running $50,000 a month with a typical consumer card mix — about 35% debit, 50% standard credit, 15% rewards.

That's roughly $8,400 a year. The auto shop saves more in dollar terms than the law firm — because the auto shop's card mix is cheaper, so the gap between flat-rate and true cost is wider.

Marketing agency — $25K/month, all CNP card transactions

A marketing agency running $25,000 a month, billed through invoice payment links. All card-not-present. Mix is heavy on corporate cards because clients are paying with their corporate card.

The agency's savings are tighter because corporate-heavy card mixes have higher interchange — but the IC+ wins, and the agency also gets out of Stripe's account-freeze risk. Read the marketing agencies industry page for why that matters.

What an IC+ statement actually looks like

This is the part that throws merchants off — IC+ statements look more complex than what they're used to. They're not. They're just more honest.

A flat-rate statement shows one line: "Total processing fee: $795." An IC+ statement shows every interchange category as its own line, the markup as its own line, the debit fees as their own line. Longer statement. Easier to audit.

At first read, that statement looks intimidating. But spend two minutes with it and you can see exactly what every dollar in fees went to. Try doing that with a flat-rate statement. You can't — there's nothing to see.

The first time a merchant reads an IC+ statement, it's confusing. The second time, it's revealing. By the third statement, most merchants are checking it monthly to make sure their card mix is what they expect. Read the merchant statement guide for a full walkthrough.

Who benefits most from Interchange Plus

IC+ isn't the right model for every merchant. Here's who wins big with it.

Established merchants with consistent volume

If you process $20,000 a month or more, on stable monthly volume, IC+ almost always beats flat-rate. The bigger your volume, the bigger the savings — because the markup is fixed and the interchange is pass-through.

Businesses heavy on debit transactions

Retail, restaurants, salons, gas stations — anywhere customers pay primarily with debit. Debit interchange is dirt cheap (under 0.5%). Flat-rate processors charge you the same 2.65% on a debit transaction as on a premium credit transaction. IC+ passes the real cost through. Read the retail page and restaurants page for industry-specific math.

B2B and professional services

Lawyers, accountants, consultants, agencies — anyone invoicing business clients who pay with corporate or business cards. Corporate cards have high interchange, but IC+ at least limits your exposure to the actual interchange instead of compounding it through flat-rate markup. See the professional services page →

Card-not-present operations

Online businesses, B2B with payment links, recurring billing. IC+ paired with Authorize.Net or Converge gives you transparent pricing without the customer-facing surcharge. Best fit for businesses that can't surcharge or do dual pricing.

Quebec merchants who can't surcharge

Surcharging is restricted in Quebec. Dual pricing and cash discount are both options — but IC+ is the cleanest model for any Quebec merchant who doesn't want a customer-facing pricing mechanism at all.

How to switch to Interchange Plus

Switching to IC+ isn't complicated. It's the same switch process as moving to any new processor.

Step 1: Pull your last three months of statements

You need the raw data to compare. Your statements show your current effective rate, total fees, and card mix — all the inputs needed to model IC+ savings. Three months is enough to smooth out monthly variation.

Step 2: Calculate your effective rate

Total fees divided by total card volume equals your effective rate. If you paid $1,200 in fees on $40,000 of volume, your effective rate is 3.0%. That's the number to compare against IC+. Most Canadian merchants on flat-rate or tiered pricing pay 2.5% to 3.5% effective.

Step 3: Get an IC+ quote based on your actual card mix

Send your statement to Dough. We model your exact savings using your real interchange categories — not industry averages. You'll see your projected effective rate under IC+ before you sign anything. Most quotes come back the next business day.

Step 4: Sign and schedule the switch

Approve the quote. Underwriting takes one to two business days. Most merchants are live on IC+ within two to three days of starting the process. Your bank account stays the same. Your bookkeeping stays the same.

Step 5: Read your first IC+ statement carefully

Your first statement will look very different from a flat-rate statement. Each interchange category shows up as its own line. Total fees will be lower — but check the math against your old statements to confirm the savings. After two months of IC+ statements, you'll never want to go back.

Common mistakes to avoid

The model is straightforward but here are the few traps to watch for.

1. Comparing IC+ markup to flat-rate headline

Don't compare "0.20% IC+" to "2.65% flat-rate" and think you're getting a 90% discount. The markup is the part the processor keeps — you still pay interchange on top. The real comparison is your effective rate under each model. Most merchants on IC+ have an effective rate of 1.8% to 2.3% all-in.

2. Picking a processor with a low markup but high "other fees"

Some processors quote a 0.10% IC+ markup but then load up monthly fees, PCI fees, batch fees, gateway fees, and statement fees that bring your effective rate higher than a clean IC+ deal. Always ask for the full fee schedule — not just the markup.

3. Not auditing your first three statements

IC+ is transparent — but transparency only helps if you actually read the statement. Audit your first three IC+ statements to confirm your card mix is what you expect and your markup is what was quoted. After that, monthly checks are fine.

4. Assuming your card mix won't change

If you're an auto shop running mostly consumer debit and credit, IC+ will be great. If your customer base shifts to corporate fleet cards over time, your interchange creeps up. The markup stays fixed — but interchange isn't. Worth knowing.

5. Forgetting about debit transaction fees

Dough's IC+ includes a $0.04 per debit transaction fee. On a high-debit-volume business with 1,000 debit transactions a month, that's $40 — usually still way cheaper than flat-rate, but include it in your math.

When IC+ is NOT the right fit

IC+ is the most transparent model, but it's not always the cheapest. Here's when something else fits better.

Surcharging-eligible high-ticket businesses

If you run an auto repair shop, trades business, or any high-ticket service business outside Quebec, surcharging drops your processing fees to $0. IC+ saves you 30-50%. Surcharging saves you 100%. If surcharging fits your business, do that instead.

Dual-pricing-friendly businesses

Restaurants, retail, salons, professional services — anywhere customers expect transparent pricing. Dual pricing or a cash discount program can also drop your fees to near $0 while staying customer-friendly.

Very low volume businesses

If you're processing under $5,000 a month, the savings from IC+ vs flat-rate get thin — and the simplicity of flat-rate may be worth it. Most processors won't even offer IC+ to merchants under a certain volume threshold.

Brand new merchants with no history

If you have no processing history, no statements to audit, and no card mix to model, IC+ is harder to quote precisely. A flat-rate model gives you predictability while you figure out your business. Switch to IC+ after you have three to six months of volume.