Payment fees and pricing models
Understanding your payments cost structure is essential for managing margins. At Airwallex, the price for a payment is built from three cumulative components plus any additional services you utilize.
Core transaction fees
For every transaction you process using Airwallex payment gateway services, the transaction cost includes these three base fee components:
| Fee component | Description |
|---|---|
| Gateway fee | A fee for the routing and gateway technology that identifies the most suitable provider for the transaction. This covers the technical infrastructure connecting you to the global payments network. |
| Payment method fee | A specific fee charged based on the payment method used, for example, Visa, Alipay, Klarna. For card payments, the calculation of this fee depends on the pricing model, whether you choose Interchange++ or Blended pricing. |
| Fraud and 3D Secure fee | A fee for the risk management engine, which uses real-time data to prevent fraud, and for 3D Secure authentication services when applicable. |
Additional service fees
These fees only apply when specific events occur or optional services are used.
| Additional service | Description |
|---|---|
| Foreign Exchange (FX) fee | Covers the costs associated with converting the funds. This is charged when the processing currency (what the shopper pays in) differs from the settlement currency. Note: Use Airwallex's like-for-like settlement to settle in the same currency you charge, avoiding this fee entirely. See Settlements. |
| Exception handling fee | Covers administrative costs for all parties involved in resolving an exception. This is charged when an exception is received from the card scheme or acquirer, such as a dispute or a formal Request for Information (RFI). |
| Multi-currency pricing (MCP) and ACC (Automatic Currency Conversion) fee | MCP fee is paid by the merchant to offset the FX risk when you list prices in foreign currencies but settle in your home currency. ACC fee is paid by the shopper at checkout if they choose to pay in their home currency rather than the merchant's currency. |
Pricing models
Understanding the costs from the different players in the payment ecosystem is the first step to choosing your pricing model.
| Fee component | Paid to | Description |
|---|---|---|
| Interchange fee | The issuing bank (shopper's bank) | The fee paid to the bank that issued the card. This covers the risk of approving the transaction. |
| Scheme fee | The network (Visa / Mastercard) | The fee paid to the card network for processing the data and maintaining the global payment infrastructure. |
| Acquirer fee | Airwallex | The fee paid to Airwallex for processing the payment (gateway fee), risk management (fraud and 3DS fee), and settling funds into your Airwallex Wallet. This is the only part of the fee that Airwallex controls. |
Choose your pricing model
While pricing models are based on the same underlying card payment costs (interchange fee, scheme fee, acquirer fee), they offer different levels of transparency and variability depending on the model you choose.
| Interchange++ (IC++) | Blended Pricing | |
|---|---|---|
| Description | You pay exactly what the card schemes charge, plus a fixed markup from Airwallex, that is, interchange fee + scheme fee + Airwallex markup. Only applies to card payments. | Airwallex charges a single fixed rate for all transactions, regardless of the underlying card costs by absorbing the variance in interchange and scheme fees, that is, Fixed % + Fixed Fee, for example, 2.9% + $0.30. Applies to card and local payment methods. |
| How it works | If a transaction has a low interchange fee, for example, a local debit card, your total cost goes down. If it’s a high-cost card, for example, International Corporate Rewards, your cost goes up. | Your cost is predictable and easy to reconcile. You pay the same rate for a premium rewards card as you do for a standard debit card. |
| Best suited for | High-volume merchants who want cost transparency and optimization. | Small to medium businesses that prioritize simplicity and easy financial forecasting over granular cost optimization. |
| Cost transparency | High (you can see breakdown of every cost) | Low (single aggregated fee) |
| Cost variability | Variable (fluctuates by card type) | Stable (always the same rate) |
| Reconciliation effort | High | Low |
See also
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