When it comes to accepting card payments, choosing the right pricing model can make a significant difference to a business’s bottom line. While Blended pricing offers a simplified, single-rate structure, Interchange++pricing provides a transparent breakdown of fees that can lead to considerable savings - especially for growing businesses or those with a high volume of transactions.

What is Interchange++ Pricing?

Interchange++ (or IC++) pricing is a model in which the fees for each transaction are broken down into their individual components:

·       Interchange Fee – The cost that goes to the card-issuing bank, set by card networks such as Visa or Mastercard.

·       Card Scheme/Network Fee – A smaller fee paid to the card network for processing the transaction.

·       Processor Mark up – The payment processor’s fee added on top of the interchange and scheme fees.

With Interchange++ pricing, you see exactly what you’re paying for each element of every transaction, which helps in understanding the true cost of accepting card payments.

Why Interchange++ is the Superior Option

Here’s why Interchange++ is frequently the better choice for businesses focused on transparency, control, and cost-effectiveness.

1. Transparency Like No Other

One of the biggest advantages of Interchange++ is its transparency. Unlike Blended pricing which combines all fees into a single rate-  Interchange++ shows exactly where each penny goes. This breakdown makes it easy for businesses to understand and manage their payment processing costs, giving greater visibility into how much they’re paying for interchange, scheme fees, and processor mark up.

2. Significant Cost Savings Potential

Interchange++ is more cost-effective because it accurately reflects the true interchange rate of each card type. For example, debit cards typically incur lower interchange fees than credit cards, and with Interchange++, those savings are passed directly to you. In contrast, Blended pricing charges a single, average rate that may not reflect these differences—meaning you could end up paying more than necessary, especially on lower-cost transactions.

3. Fair Pricing for Different Card Types

Different types of cards carry different interchange rates. Premium credit cards, business cards, and international cards often come with higher fees, while standard debit cards are less costly. Interchange++ pricing ensures you only pay the actual cost associated with each specific card type. With Blended pricing, these nuances are lost, as you pay the same rate regardless of the card used, which can penalise businesses that process more low-cost transactions.

4. Better Scalability as Your Business Grows

As a business grows and transaction volumes increase, the benefits of Interchange++ become even more evident. For companies processing large numbers of card payments, paying the exact interchange rate for each transaction can significantly reduce costs over time. Blended pricing may be simpler to understand initially, but it often becomes more expensive as transaction volumes rise, eating into margins that could otherwise support business growth.

5. More Leverage for Negotiation

Interchange++ pricing also gives you more leverage when negotiating with payment processors. The transparency of this model makes it easy to see the “++” or processor mark up, making it more straight forward to negotiate and secure a better deal on this portion of the fee. With Blended pricing, on the other hand, the processor’s mark up is hidden within a single flat rate, offering limited room for cost control.

While Blended pricing may seem easier to manage at first glance, Interchange++ is often the smarter choice for businesses looking to optimise payment processing costs. Its transparency and cost-saving potential make it especially attractive to businesses with high transaction volumes, allowing them to retain more of their revenue by only paying for the exact costs incurred. For businesses aiming to take full control of their transaction costs, the itemised structure of Interchange++ pricing delivers clarity, fairness, and savings that can support sustainable growth.