How Flat-Rate Pricing Works
Square charges 2.65% for every in-person tap. Stripe charges 2.9% + $0.30 online. Doesn't matter if the customer uses a basic Visa debit, a premium Amex, or an Interac card. Same rate.
The appeal is obvious: simple, predictable, easy to understand. You know exactly what each sale costs. No surprises on your statement.
But that simplicity has a price. On a basic Canadian Visa debit card, the actual interchange fee is about 0.60%.
Square charges you 2.65% and keeps the ~2.05% difference. On Interac debit, the interchange is about $0.07 flat — Square still charges 2.65% of the sale and pockets nearly all of it.
How Interchange-Plus Pricing Works
Interchange-plus (or "cost-plus") passes through the actual interchange fee charged by the card network, then adds a fixed markup on top. With Helcim, that markup is 0.15% + $0.06 for in-person transactions.
So on that same basic Visa debit card (interchange ~0.60%), you'd pay 0.60% + 0.15% + $0.06 = about 0.75% + $0.06. On a $50 transaction: $0.44 instead of $1.33 with Square.
On Interac debit: $0.07 interchange + 0.15% + $0.06 = roughly $0.21 total. Square would charge $1.33 for the same transaction. You save $1.12 on every single debit tap.
The Real Numbers at Every Volume
Here's what a typical Canadian retail business actually pays. Assumptions: 65% in-person / 35% online, 30% of in-person is Interac debit, average transaction $55.
| Monthly Volume | Square (Flat) | Stripe (Flat) | Helcim (IC+) | Annual Savings (IC+) |
|---|---|---|---|---|
| $3,000 | $81 | $93 | $58 | $276–$420 |
| $5,000 | $135 | $155 | $94 | $492–$732 |
| $10,000 | $268 | $308 | $183 | $1,020–$1,500 |
| $25,000 | $668 | $768 | $443 | $2,700–$3,900 |
| $50,000 | $1,335 | $1,535 | $865 | $5,640–$8,040 |
| $100,000 | $2,670 | $3,070 | $1,690 | $11,760–$16,560 |
At $10K/month, switching from flat-rate to interchange-plus saves $85–$125 monthly. That's $1,000–$1,500 a year for doing nothing except changing processors. At $50K/month, you're saving $470–$670 monthly — enough to hire a part-time employee.
Run your own numbers through our fee calculator →
Why Interac Debit Is the Hidden Driver
This is the part most US-focused guides miss entirely, and it's the single biggest reason interchange-plus wins for Canadian businesses.
Interac debit transactions cost processors about $0.05–$0.15 each. Not a percentage — a flat nickel to fifteen cents regardless of transaction size.
On a $200 purchase, Interac costs $0.10. Credit cards cost $3–$5.
Flat-rate processors charge you the same percentage on debit as credit. Square takes 2.65% on an Interac tap that costs them seven cents.
That's not a pricing model — it's a subsidy. You're subsidizing the cost of someone else's Aeroplan Visa Infinite.
With interchange-plus pricing, you pay the actual Interac cost ($0.05–$0.15) plus a small markup. On a $100 Interac transaction:
- Square: $2.65
- Helcim: ~$0.27
- Difference: $2.38 per transaction
If 30% of your transactions are Interac debit (normal for Canadian retail), interchange-plus saves you a small fortune. Read more about how Interac fees work.
When Flat-Rate Actually Makes Sense
Flat-rate isn't always the worse deal. There are real scenarios where it wins:
Very Low Volume (Under $3,000/month)
The dollar difference is small — maybe $15–$25/month. At that level, simplicity and features matter more than a 0.5% rate difference. Square's free POS, free magstripe reader, and phone support have real value.
High-Interchange Card Mix
If your customers mostly use premium rewards cards (Visa Infinite, World Elite Mastercard), interchange rates run 2.0–2.5%. Add Helcim's markup and you're at 2.15–2.65% — nearly the same as Square's flat rate. Businesses that cater to high-income demographics (luxury retail, high-end restaurants) sometimes see smaller savings from interchange-plus.
Mostly Online, Mostly Credit
Online transactions have higher interchange rates, and you get zero Interac debit benefit online (customers can't tap debit on a website). If you're 100% e-commerce with no debit volume, the savings gap narrows.
Micro-Transactions
The per-transaction fee on interchange-plus ($0.06–$0.25 per transaction with Helcim) adds up on very small sales. A coffee shop doing 800 transactions at $4 average pays $48–$200/month in per-transaction fees alone. At that ticket size, Square's percentage-only in-person rate (2.65%, no per-transaction fee) can be cheaper.
The Crossover Point
For a typical Canadian business (mix of debit and credit, $40–$80 average ticket, some in-person and some online), the crossover happens around $2,500–$4,000/month in processing volume.
Below that: flat-rate is fine. The savings from interchange-plus are $10–$20/month — not worth the mental energy of reading interchange statements.
Above that: interchange-plus wins, and the gap widens with every dollar of volume. By $10K/month, you're throwing away $100/month on flat-rate. By $50K, it's $500+.
The "I Don't Want to Read Statements" Objection
Fair concern. Interchange-plus statements are more complex than flat-rate.
You'll see line items for different card types, network fees, and assessments. It looks intimidating.
But here's the thing: you don't need to read them. The total is the total.
Helcim's dashboard shows your effective rate — one number. If that number is lower than Square's 2.65%, you're saving money. That's it.
And honestly, if you're processing enough volume for the savings to matter ($5K+/month), you should be looking at your processing costs anyway. Ignoring a $100/month expense because the statement has more line items is not a great business decision.
What About Moneris Interchange-Plus?
Moneris also offers interchange-plus pricing, but there's a catch: monthly fees. Moneris charges $24.95–$49.95/month for the account, plus potential terminal rental ($25–$35/month), plus PCI compliance fees ($9.95/month on some plans).
Before you process a single transaction, you could be paying $60–$85/month in fixed costs. Helcim charges $0/month for everything — no monthly fee, no terminal rental, no PCI fee. You'd need to process $15K–$20K/month before Moneris's slightly lower interchange markups offset those fixed costs.
If you're processing $50K+ and have negotiating leverage, Moneris can get competitive. Below that, Helcim's zero-fee structure almost always wins.
Switching Is Easier Than You Think
The biggest barrier to switching from flat-rate to interchange-plus is inertia. People assume it's complicated. It's not.
- Sign up with Helcim (takes ~10 minutes, no contract)
- Get your card reader shipped (free for qualifying businesses)
- Update your online checkout (Helcim has plugins for Shopify, WooCommerce, etc.)
- Start processing
No early termination fees with Square or Stripe — you can keep both accounts active during the transition. Process a month on Helcim, compare the actual costs, then decide. See our step-by-step setup guide.
🏆 Bottom Line
Flat-rate pricing is a convenience tax. It's fine at low volume — under $3K/month, don't stress about it.
But once you cross $5K/month, interchange-plus saves real money. At $25K+, you're giving away thousands per year to Square or Stripe that could be in your pocket.
The biggest driver for Canadian businesses is Interac debit. No other country has a domestic debit network this cheap.
Paying 2.65% on a $0.07 transaction is the most expensive convenience fee in Canadian payments. Stop paying it.