Pricing explained, in plain English
Three ways to price card processing, what each one costs, and how to compare them fairly. Every Cedarline quote is in writing, with every fee disclosed.
The three pricing models
Each one can be the right choice. Here's how they work.
Flat rate
One percentage plus a per-sale fee on every card. Easy to read, but you pay the same rate on a cheap debit card as on a premium rewards card.
- Predictable
- Simple statements
- Often costs more as volume grows
Fits: low volume, seasonal or brand-new sellers
Interchange-plus
You pay the card networks' wholesale cost (interchange and assessments) plus a fixed, disclosed markup. Every layer shows on your statement.
- Most transparent
- Markup stays fixed
- Usually lowest cost at higher volume
Fits: established businesses, larger tickets, B2B
Cash discount / dual pricing
Your posted prices account for card costs, and customers paying cash get a lower price. Card sales help cover processing instead of your margin.
- Offsets much of your processing cost
- Clear signage and receipts
- Not a surcharge
Fits: restaurants, auto, retail, service shops
Not sure which fits? Get a free statement analysis or read pricing explained.
Side by side
| Flat rate | Interchange-plus | Cash discount / dual pricing | |
|---|---|---|---|
| How it's charged | One rate + per-sale fee on every card | Actual interchange + assessments + fixed markup | Card price includes the cost; cash customers get a discount |
| Transparency | Simple, but hides the real cost | Highest: every layer shown | Clear to customers with proper signage |
| Cost as volume grows | Often the highest | Usually the lowest rate-based option | Card sales offset much of the processing cost |
| Customer-facing changes | None | None | Signage, menus/tags and receipts |
| Good fit | New, low-volume or seasonal | Established, larger tickets, B2B | Restaurants, auto, retail, service shops |
What's in a processing fee
Interchange goes to the card-issuing bank and is the largest part. Assessments go to the card networks. The processor markup is what the processor and agent earn, and it's the only part anyone can negotiate.
On top of per-transaction costs, some programs carry monthly fees: gateway, POS software, PCI compliance, statement fees, or equipment payments. A fair comparison counts all of them. That's why we compare effective rates, not advertised rates.
What every Cedarline quote shows
- Pricing model and rates
- Per-transaction fees
- Every monthly or annual fee
- Equipment terms (included, purchased or leased)
- Agreement length and any cancellation cost
- Who the processor is
About surcharges in Texas
Cash discount and dual pricing programs need proper disclosure: signs at the entrance and register, consistent prices on menus and tags, and receipts showing the discount or both prices. We set those up with you. Read the full explainer.
Frequently asked questions
What is interchange?
The wholesale cost of a card transaction, set by the card networks and mostly paid to the bank that issued the card. It varies by card type, how the card is accepted and your business type.
What's an effective rate?
Total processing fees divided by total card sales for the month. It's the fairest single number for comparing pricing. Try the effective rate calculator.
Is a cash discount program legal in Texas?
Texas law expressly allows merchants to offer a discount for paying cash. Programs need clear signage and receipts. This isn't legal advice.
Why don't you advertise a rate?
Because the right price depends on your card mix, ticket size and how you accept payments. A rate without your numbers is a guess. You'll get a written quote built on your statement.
Are there monthly fees?
Some programs have monthly fees for gateways, POS software or PCI. Every fee is listed in your written quote. If it's not on the quote, ask us about it before you sign.
Related
Want your options priced on your numbers?
Send a recent statement or tell us about the business you're opening. You'll get a plain-English breakdown and options, with no cost or obligation.