Pricing & Fees4 min read

What Is Flat-Rate Payment Processing?

Flat-rate payment processing generally bundles interchange, network fees, and provider markup into simplified published rates. Pricing can vary by transaction channel, card-present vs card-not-present, keyed transactions, product, and other applicable fees.

By ONKORE Payment Solutions

Direct Answer

Flat-rate payment processing is a pricing model where a provider generally bundles interchange, network assessments, and its own markup into simplified published rates. The published rate can vary by transaction channel (card-present vs card-not-present), keyed-entry transactions, product, and provider, and other fees may still apply.

How It Works

Instead of listing interchange, assessments, and markup separately, a flat-rate provider charges one or a small number of published rates that cover these costs. Many providers charge one rate for card-present transactions and a different rate for online or keyed transactions. Additional fees — such as chargeback fees, PCI fees, or monthly account fees — may also apply depending on the provider and plan.

Key Points

Flat-rate pricing is simple and predictable, with no interchange line items.
Published rates can differ by channel, card-present vs card-not-present, keyed transactions, and product.
It is common among aggregator-style payment providers, but models vary.
Because the rate is blended, rewards and business cards that carry higher interchange may cost the provider more, which is absorbed into the published rate.

What Merchants Should Know

Flat-rate is easy to budget and quick to set up, but for businesses with higher volume or many rewards and business cards, interchange-plus can be more cost-effective. Compare both models against your actual card mix rather than assuming one is always cheaper.