Interchange++ Pricing
Understanding Interchange++ Pricing. And Why It Can Benefit Your Business.
If you’ve ever looked at your card payment fees and wondered why different transactions cost different amounts, you’re not alone.
Many businesses process thousands of card payments every month. Yet the way those payments are priced isn’t always clear.
Interchange++ pricing is designed to bring transparency and fairness to card processing costs. It allows businesses to see - and benefit from - the true cost of each transaction, rather than paying an estimated average. It is why most larger businesses prefer Interchange++ pricing.
This page explains how Interchange++ pricing works, and why it can be particularly valuable for businesses that accept a high number of business and commercial card payments.
Every Card Payment Has Three Costs
To understand Interchange++ pricing, it helps to first understand what makes up the cost of a card payment.
Every card transaction is made up of three parts. Together, these three components form the true cost of accepting a card payment.
1. Interchange Fees
This is the fee paid to the customer’s bank. It is usually the largest part of the total cost, and it varies depending on:
- Whether the card is debit or credit
- Whether it is a consumer (personal) or commercial (business) card
- Where the card was issued
- How the payment is processed
Consumer card interchange fees are capped in the UK and EU, respectively to 0.20% for personal debit cards, and 0.30% for personal credit cards.
Commercial (business) card interchange fees are not subject to the same caps. Which means interchange fees can vary more widely, typically ranging from around 0.30% to 1.95%.
2. Card Scheme Fees
These fees are paid to the card networks, such as Visa and Mastercard. They cover the cost of running the global payment networks that allow cards to be used anywhere.
3. Adyen Processing Fees
These are the fees for:
- Processing the transaction securely
- Managing payment infrastructure
- Providing reporting and reconciliation
- Supporting your payment operations
- Adyen Financial Technology
Why Not All Card Payments Cost the Same
One of the most common assumptions businesses make is: “Every card payment costs the same.” In reality, the cost of accepting cards can vary significantly.
- A consumer (personal) debit card might have a low regulated interchange rate
- A commercial (business) credit card may have a high unregulated rate
- Some transactions qualify for lower categories based on how they are processed
This variation is especially noticeable in B2B environments:
- Wholesalers
- Trade counters
- Builders’ merchants
- Electrical or plumbing suppliers
These businesses often see a higher proportion of commercial (business) card payments, which means their transaction costs can vary widely.
Most Businesses Are Using One of Two Pricing Methods
Understanding the difference between these models helps explain where savings can come from.
Blended Pricing - One Average Rate
With blended pricing, every transaction is charged at the same rate, regardless of the actual cost.
For example: 2.50% on all commercial (business) card payments
This approach is simple - but it can hide the real cost of individual transactions. Because commercial (business) card fees can vary significantly, blended rates are set high enough to cover the most expensive scenarios.
That means:
- Some transactions cost less
- Some transactions cost more
- But you pay the same higher average rate every time
Over time, this can result in paying more than necessary, especially if many transactions qualify for lower costs.
Interchange++ Pricing - Pay the True Cost
Interchange++ pricing works differently.
Instead of charging an average rate, each transaction is priced using its actual cost components:
- The actual interchange fee
- The actual scheme fee
- Adyen Financial Technology fees
This creates transparent pricing, where the cost of each transaction reflects the real underlying fees.
Rather than estimating costs and adding a margin, Interchange++ simply passes the costs through.
Why Interchange++ Matters for Businesses Using Commercial Cards
For businesses that serve consumers, pricing variation will be modest. But for wholesalers and trade-focused businesses, the impact will be much greater.
- Many customers pay using commercial (business) debit cards
- Others use commercial (business) credit cards
- These cards have unregulated interchange fees that can vary from around 0.30% to 1.95%
Under blended pricing, higher-cost cards are assumed, so the average rate is increased.
Under Interchange++ each transaction is priced according to its actual cost.
This difference is why many B2B-focused businesses benefit from moving away from blended pricing.
A Simple Way to Think About It
Sometimes the easiest way to understand Interchange++ pricing is through a simple comparison.
Blended pricing is like paying the same price for every item in your warehouse - whether it’s an apple, or a case of vintage champagne.
Interchange++ pricing is paying the correct price for each item. You save money by paying the true cost.
The Key Benefits of Interchange++ Pricing
Once businesses understand how Interchange++ works, the benefits become clearer.
Greater Transparency
You can see exactly how each transaction is priced, rather than relying on estimated averages.
Cost-Reflective Pricing
Each payment is charged based on its real cost - not a predicted average.
Potential Savings for B2B Businesses
Businesses that accept large numbers of commercial and business cards often benefit the most.
This includes:
- Wholesalers
- Trade counters
- Builders’ merchants
- Industrial suppliers
- Distribution businesses
Curious About Your Current Costs?
If your business regularly accepts company or commercial cards, there’s a strong chance your current pricing includes blended assumptions.
If you're happy to share a recent payment processing statement, we’ll review whether Interchange++ pricing could provide better transparency and potential savings for your business.
To get started, we need some basic information about you and your business.