Card processing fees
Is interchange-plus or flat-rate pricing better for a restaurant?
Updated · Checked against primary sources
The short answer
Interchange-plus usually wins for restaurants with a lot of debit and basic credit cards, because a flat rate charges them the same as premium rewards cards. It saves little when most guests pay with premium credit. In two hypothetical card mixes built on Visa's 2026 interchange, a debit-heavy mix saved about $640 a month on interchange-plus and a premium-heavy mix about $65.
Key takeaways
- Interchange-plus passes through the real network cost and adds a visible markup.
- Flat rates are simpler, and the processor keeps the difference on cheap cards.
- Toast runs some accounts on interchange-plus, per its billing FAQ, so it is worth asking at renewal or a rate notice.
When each model wins
Card mix decides it. Pull a month of transactions by card type before you negotiate.
| Your card mix | Better model | Why |
|---|---|---|
| Mostly debit and basic credit | Interchange-plus | Low interchange passes through; a flat rate overcharges it |
| Mostly premium rewards credit | Roughly even | Interchange is already near the flat rate |
| Very low volume | Flat rate | Simplicity; markup negotiation rarely pays |
Frequently asked questions
- When is the best time to ask Toast for interchange-plus?
- At a rate-change notice, when section 6.2(b) of the merchant agreement lets you leave without the early termination fee, at renewal, which needs 30 days' written non-renewal notice, or when adding a location.
Run your own numbers
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Go deeper
- GuideToast Processing Fees: 2026 Rates and IncreasesToast processing fees in 2026: typical in-person and keyed rates, the verified 2024 and March 2026 increases, Toast Pay's keyed rate, and your exit rights.
- GuideHow to Audit a Toast Processing StatementRead a Toast processing statement line by line, calculate your true effective rate, and catch keyed misrates and increases inside Toast's 30-day window.
- GuideHow to Negotiate Toast Processing RatesNegotiate lower Toast processing rates using your contract's leverage points: rate notices, renewal and new locations. Plus flat vs interchange-plus math.
Terms on this page
- Interchange-plus pricing
- A pricing model where the processor passes through the actual interchange and network fees and adds a fixed markup, usually a percentage plus a per-transaction fee. It makes the processor's margin visible on the statement.
- Flat-rate pricing
- A pricing model that charges one blended percentage plus a per-transaction fee regardless of the card used. Simple to read, but the processor keeps the difference when the underlying interchange is low.
- Interchange
- The fee the card-issuing bank receives on each card payment, set by the card networks (Visa, Mastercard) and varying by card type and how the card was taken. It is the largest part of processing cost and the part no processor can discount.
Sources
- Toast Support: Billing FAQ
- Visa USA interchange reimbursement fees (eff. Apr 18, 2026)
- Toast Merchant Agreement (updated Sept 10, 2025)
Cite this page
Pavado, “Is interchange-plus or flat-rate pricing better for a restaurant?”, https://www.pavadotech.com/restaurants/questions/interchange-plus-vs-flat-rate-for-restaurants, updated 2026-09-23.