Interchange++ pricing

What is Interchange++ pricing?

Interchange++ pricing is a payment pricing model where the cost of card processing is split into three main parts: interchange fees, scheme fees, and the payment provider's markup.

The name comes from this structure:

• Interchange — the fee paid to the cardholder’s issuing bank;
• First plus — scheme fees charged by card networks;
• Second plus — the acquirer, processor, or PSP markup.

In simple terms, Interchange++ pricing shows the main cost components behind card payment processing instead of combining them into one blended rate.

How does Interchange++ pricing work?

Under Interchange++ pricing, the merchant pays the underlying interchange and scheme fees, plus an agreed provider margin. This means the final cost of each transaction can vary depending on the card type, issuing country, transaction region, card network, currency, payment channel, and risk profile.

For example, a domestic debit card transaction may have a lower cost than a cross-border premium credit card transaction. With Interchange++ pricing, those differences are usually reflected in the merchant's payment costs.

Interchange++ vs blended pricing

Interchange++ pricing and blended pricing are two common ways to charge merchants for card payments. Interchange++ pricing separates the main cost components, giving merchants more visibility into what they pay for interchange, scheme fees, and provider markup.

Blended pricing combines multiple cost components into one fixed or simplified rate, such as a single percentage per transaction. This can be easier to understand, but it gives less detail about the underlying payment costs.

Benefits of Interchange++ pricing

Interchange++ pricing gives merchants and payment teams more visibility into card processing costs.

This can help businesses:

• compare providers more accurately;
• understand why transaction costs vary;
• separate network costs from provider margin;
• analyse domestic and cross-border payment costs;
• evaluate the cost impact of different card types;
• improve payment cost reporting;
• negotiate provider pricing with better context.

Interchange++ pricing is often used by larger merchants, high-volume businesses, and companies that need clearer payment cost analysis.

Limitations of Interchange++ pricing

Interchange++ pricing is more transparent, but it can also be harder to read than a blended rate. Because interchange and scheme fees vary by transaction type, monthly statements may include many fee categories and changing effective rates. Payment teams need enough reporting detail to understand what each fee relates to and how it affects total payment cost.

For smaller merchants or businesses with simple payment flows, a blended rate may be easier to manage. For larger or more complex merchants, Interchange++ can provide better cost visibility.