Acquiring
Interchange-plus pricing
Transparent acquirer pricing model that passes interchange and scheme fees through at cost with a fixed processor markup on top.
Interchange-plus (IC+) is a pricing model where an acquirer passes the direct costs of processing a transaction, specifically the interchange fee and scheme fees, directly to the merchant, alongside a distinct markup. Within this framework, interchange fees are set by card schemes like Visa and Mastercard and paid to the card issuer, while scheme fees cover the network's processing costs. The acquirer then adds a pre-agreed margin, typically expressed as a percentage or a fixed per-transaction fee, to cover their own overheads and profit. This structure is often favoured by larger merchants within the European Economic Area because it accounts for regulatory caps on interchange, which are currently set at 0.20% for consumer debit cards and 0.30% for consumer credit cards. Because these underlying costs are broken out on monthly statements, the merchant gains visibility into the impact of different card types and regional processing variations on their total cost of acceptance.
Frequently asked
How does interchange-plus compare to interchange-plus-plus (IC++) pricing?
While interchange-plus breaks out the interchange and the acquirer markup, IC++ further separates the scheme fees into a distinct third line item. This offers the highest level of granular reporting, ensuring the merchant can verify that their provider is not bundling hidden margins into the scheme fee portion of the bill.
Why might a merchant choose interchange-plus over blended pricing?
Interchange-plus is generally more cost-effective for businesses with higher processing volumes because it allows them to benefit from lower-weighted costs on domestic debit transactions. In contrast, blended pricing often uses a higher flat rate to account for the risk of expensive corporate or international cards, which can result in the merchant overpaying for lower-cost payment methods.
Related terms
The fee paid by the acquirer to the issuer on every card transaction, set by the schemes.
Fees charged by Visa and Mastercard (or another scheme) to acquirers and issuers on every transaction.
A single flat rate (e.g. 2.9% + 30¢) charged on all card transactions regardless of underlying interchange.
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