Acquiring
Scheme fee
Fees charged by Visa and Mastercard (or another scheme) to acquirers and issuers on every transaction.
Scheme fees represent the service charges levied by card networks such as Visa and Mastercard to facilitate transaction processing and maintain the network infrastructure. Unlike interchange, which is paid to the issuing bank, scheme fees are collected by the card associations to cover operational costs, brand development, and technical maintenance. These fees are structured through complex rate tables and may include fixed per-transaction components alongside ad-valorem percentages based on transaction volume. Common components include processing fees, cross-border surcharges, and integrity fees triggered by certain technical behaviours like excessive authorisation requests or failing to use 3D Secure where required. For merchants on an Interchange Plus Plus (IC++) pricing model, these costs are passed through transparently, whereas blended pricing models aggregate them into a single rate. Regulators like the European Commission often monitor these fees to ensure they do not circumvent interchange fee caps, though scheme fees themselves are generally not subject to the same statutory limits as interchange.
Frequently asked
How do scheme fees differ from interchange fees?
Interchange fees are paid by the acquirer to the cardholder's issuing bank to cover the costs of credit risk and card issuance. In contrast, scheme fees are paid directly to the network provider, such as Visa or Mastercard, for the use of their proprietary payment rails and brand services.
Why might scheme fees fluctuate for the same transaction volume?
Scheme fees are influenced by several variables including the geographic location of the issuer, the card type used, and specific technical compliance. Networks frequently update their fee schedules in April and October, potentially introducing new costs for specific transaction characteristics like lack of SCA or cross-border processing.
Related terms
The fee paid by the acquirer to the issuer on every card transaction, set by the schemes.
Transparent acquirer pricing model that passes interchange and scheme fees through at cost with a fixed processor markup on top.
A single flat rate (e.g. 2.9% + 30¢) charged on all card transactions regardless of underlying interchange.
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