Flat-rate or interchange-plus — sounds like a question on a test nobody wants to take. But it's one of the biggest levers on what you actually pay to accept cards, and the right answer depends on your restaurant, not a sales rep's quota. Let me walk you through both so you can make a real decision.
Flat-rate pricing
Flat-rate means you pay one percentage (and sometimes a fixed per-transaction fee) on every sale, regardless of card type. It's simple and predictable, which is why newer restaurants like it. The trade-off is that you pay the same rate on a basic debit card as on a premium rewards card, even though those cards cost the processor very different amounts.
For lower-volume restaurants, the simplicity is often worth it. For higher-volume restaurants, flat-rate usually means you're overpaying on a chunk of transactions.
Interchange-plus pricing
Interchange-plus passes the actual interchange cost through and adds a fixed markup. You see exactly what each card costs plus the processor's margin. It's more transparent and tends to be cheaper for restaurants with healthy volume, but the statements are more complex to read.
How to choose
The honest answer: run the numbers on a real month of transactions. A good partner will help you compare your actual costs under each model rather than pushing whichever pays them more. Watch out for models that look cheap but pile on hidden fees or lock you into a long lease.
Here's the truth: the only way to know which model wins for your restaurant is to run your real numbers. I'll help you do exactly that — no pushing whichever pays me more. Request a merchant services review and we'll put your actual transactions side by side and see what's what.
Look, you've read this far — so let's skip the small talk.
If any of this hit a little too close to home, that's a sign it's time to do something about it. We're local, we've run restaurants, and I'd love to help you sort yours out — no jargon, no pressure, just an honest read from somebody who's been behind the line.
