What is Interchange++?

Key takeaways

• Interchange++ breaks your card processing fees into three visible components: the interchange fee, the scheme fee, and the acquirer markup.

• Compared to blended pricing, Interchange++ gives you full transparency and can reduce costs, especially at higher transaction volumes.

• Airwallex offers both Interchange++ and blended pricing, so you can choose the model that fits your business and transaction mix.

If you accept card payments, you're paying fees on every transaction. But, do you know where that money goes? Most businesses don't.

The charges show up on your statement as a single line item, and you're left guessing how much went to the card network, how much to the customer's bank, and how much to your payment processor.

Interchange++ (also written as IC++) fixes that by breaking every card transaction fee into its three parts: the interchange fee, the scheme fee, and the acquirer markup. You can see exactly what each party charges. That means you can audit your costs, spot patterns, and make better decisions about your payment strategy.

In this article, we'll explain how each component works, compare IC++ to blended and interchange-plus pricing, walk through a worked example, and help you decide if it's right for your business.

How Interchange++ pricing works

Every time a customer pays by card, the card processing chain runs through several parties before the money gets to you. Each one takes a cut. With most pricing models, those fees are bundled into a single charge. It's a bit like getting a restaurant bill that just says "total" and doesn't show what you paid for the food, the service, and the tax. Interchange++ is the itemised receipt, so you can see every line.

Here's what makes up the merchant discount rate, the total fee on each card transaction:

• Interchange fee: Paid to the card issuer (the customer's bank or credit card company)

• Scheme fee: Paid to the card network (Visa, Mastercard, or others)

• Acquirer markup: Paid to your payment processor (like Airwallex)

With Interchange++, we pass through the exact fees from the card issuer and card network, then add our own fixed markup on top. You can learn more about how interchange fees work in our detailed guide.

Interchange fee (paid to the card issuer)

The interchange fee is the part that goes to the customer's bank or card issuer, and it's usually the biggest part of your total fee. How much you pay depends on several factors: the type of card, where it was issued, and whether the transaction is domestic or cross-border.

In the EU and UK, consumer card interchange is capped by the Interchange Fee Regulation: 0.2% for debit cards and 0.3% for credit cards.¹ But those caps don't apply everywhere. In the US and other markets, rates can range from 1.15% to 2.9% or higher, depending on the card type. Rewards cards, corporate cards, and premium cards usually carry higher interchange because they offer more benefits to cardholders, and someone has to pay for those perks.

Here's a concrete example: if a customer pays with a UK consumer debit card, the interchange fee might be 0.2%. But if they use a US rewards credit card, it could be over 2%. That's a big difference, and with IC++ pricing, you'll see it clearly on every transaction.

Scheme fee (paid to the card network)

Scheme fees are charged by the card networks, Visa, Mastercard, American Express, and others, for using their payment rails. These are usually the smallest part of your total fee, and they typically range from 0.13% to 0.15% of the transaction value.

The main thing to know about scheme fees is that the networks set them, and they aren't negotiable. What IC++ does is show this fee as a separate line item, so you can see exactly what's going to the card network and what's going somewhere else.

Acquirer markup (paid to your payment processor)

The acquirer markup is the fee your payment processor charges for handling the transaction. An acquirer, sometimes called a merchant acquirer or payment processor, is the company that processes card payments for you and settles the funds into your account. That's us, if you're using Airwallex.

This markup typically ranges from 0.10% to 1.00%, and this is the important part: it's the only part of the fee you can negotiate directly with your payment processor. The interchange and scheme fees are set by the card issuers and networks, but the acquirer markup is where you have room to shop around and compare providers.

Why the "++" matters

The name tells you something important about how much transparency you're getting. The first "+" means the scheme fee is broken out separately. The second "+" means the acquirer markup is shown as its own line item.

In an interchange-plus (IC+) model, scheme fees and acquirer markup are often bundled together. So you might see: interchange fee + combined markup. With IC++, you see: interchange fee + scheme fee + acquirer markup. That extra level of detail means you can see exactly where every penny goes, and it's the most granular view available in card payment pricing.

Total fee = Interchange fee + Scheme fee + Acquirer markup

Interchange++ vs blended pricing

Now that you can see how IC++ breaks down your fees, let's compare it with the other common pricing model: blended pricing. Both can make sense. The right choice depends on your business, your transaction volume, and how much visibility you want into your costs.

How blended pricing works

With blended pricing, you pay a fixed rate for every card transaction, say, 2.80% + £0.30 for domestic cards. That one rate covers the interchange fee, scheme fee, and acquirer markup, all bundled together. You can see our current blended rates on our pricing page.

The advantage is simplicity. You know exactly what each transaction will cost, which makes it easier to predict your monthly payment processing expenses. The trade-off is that you lose visibility into the underlying components, so you won't know if you're overpaying on low-interchange transactions or getting a good deal on high-interchange ones.

One thing to keep in mind: if your customers pay via alternative payment methods like PayPal or Klarna, you'll be charged a blended rate regardless of which pricing model you use for card payments.

Key differences at a glance

Interchange++ vs interchange-plus (IC+)

You might also come across "interchange-plus" or "IC+" pricing, which sounds similar but isn't quite the same. With IC+, the scheme fees are usually bundled into the acquirer's markup, so you see two components instead of three: the interchange fee and a combined markup.

IC++ goes one step further on transparency by separating the scheme fee out completely. If you want the fullest picture of where your money goes, IC++ is the most granular option available.

Interchange++ pricing example

Let's walk through a real-world example so you can see how IC++ pricing works in practice. Say a customer buys something from your online store for £100 and pays with a UK consumer Visa credit card.

Under Interchange++ pricing, your statement might show:

• Interchange fee: £0.30 (0.30% — the EU/UK cap for consumer credit cards)

• Scheme fee: £0.14 (0.14%)

• Acquirer markup: £0.20 (0.20% — Airwallex's fixed markup)

• Total fee: £0.64 (0.64%)

Now compare that to blended pricing at 2.80% + £0.30:

• Total fee: £3.10

On this particular transaction, IC++ saves you £2.46. Of course, the savings depend on the card type. If the same customer had used a US corporate rewards card with a 2.5% interchange rate, the IC++ fee would be higher. But that's exactly the point: you can see what's driving your costs and make informed decisions.

Reading an Interchange++ statement

When you get an IC++ invoice or statement, you'll see line items for each component on every transaction: the interchange fee, which varies based on the card, the scheme fee, which varies slightly by network, and the acquirer markup, which stays fixed.

This level of detail helps you spot patterns. If you notice that 30% of your transactions are from international corporate cards with interchange rates above 1.5%, you might look at ways to encourage local payment methods for those customers, or at least understand why your costs are higher in certain markets. Think of it like reviewing an itemised expense report instead of just seeing a total: the detail helps you make better decisions.

Who should use Interchange++ pricing?

IC++ isn't automatically the right choice for every business. Here's a simple way to think about whether it makes sense for you.

When Interchange++ saves you money

The savings from IC++ usually start to matter once you're processing a decent volume of transactions, typically £20,000 or more per month. At that scale, even small savings on each transaction can add up fast.

Here's an illustration: if you process £50,000/month and your average interchange rate is 0.3% (common for UK consumer debit cards), you'd pay significantly less than a blended rate of 2.80%. The maths works in your favour because you're paying the actual interchange rate rather than a rate designed to cover the processor's risk across all card types.

IC++ also makes sense if you've got a diverse card mix, domestic and international, consumer and corporate, and you want to understand what's driving your costs. The transparency helps you identify opportunities to optimise.

When blended pricing might be a better fit

For smaller businesses with lower transaction volumes and a simple card mix, blended pricing can be the better choice. You get predictable costs, simpler statements, and less admin. If you'd rather not think about interchange rates and just want to know what you'll pay each month, blended pricing gives you that peace of mind.

Cross-border transactions and Interchange++

If you sell internationally, IC++ becomes especially valuable. Interchange rates are usually higher for cross-border transactions, where the card was issued in a different country from where your business is based, and IC++ makes those costs visible so you can understand the true cost of international sales.

In the EU and UK, the Interchange Fee Regulation caps consumer card interchange at 0.2% for debit and 0.3% for credit within the EEA.¹ But, cross-border fees from cards issued outside the EU/EEA aren't subject to the same caps, which means a US or Australian card could cost you significantly more to process.

This is where Airwallex's local acquiring capabilities come in. We process payments through local acquiring in 35+ markets, which means a transaction can be treated as domestic even if your business is based elsewhere, often resulting in lower interchange rates than you'd pay on a cross-border transaction.

How Airwallex handles Interchange++ pricing

We offer both Interchange++ and blended pricing through our Payments solution, so you can choose the model that fits your business. Here's what you get with either option:

• Full fee visibility: With IC++, you see the exact interchange, scheme, and acquirer markup for every card transaction

• Local acquiring in 35+ markets: Process payments domestically to reduce cross-border interchange costs

• 160+ payment methods: Accept cards, digital wallets, and local payment methods across 180+ countries

• Like-for-like settlement: Receive funds in the currency you collected them in, avoiding forced FX conversions

Transparent pricing with full fee visibility

With Airwallex's IC++ model, you can see the exact breakdown for every card transaction. No bundled fees and no guessing. That lets you audit your costs, compare what you're paying across different card types and markets, and make informed decisions about your payment strategy.

Reducing interchange costs with local acquiring

Our local acquiring network helps you pay domestic interchange rates even when you're selling across borders. If you're a UK business selling to customers in Germany, for example, we can process those payments through our local European acquiring, so the transaction is treated as domestic rather than cross-border. That often means lower interchange fees, and with IC++ pricing, you'll see exactly how much you're saving.

Ready to see how it works? Explore our Payments solution or get in touch with our team.

Frequently asked questions

What's the difference between Interchange++ and blended pricing?

Interchange++ shows you the exact interchange fee, scheme fee, and acquirer markup for each transaction, whilst blended pricing combines everything into one fixed rate. IC++ gives you more transparency and potential savings at volume. Blended pricing is simpler and more predictable.

Is Interchange++ cheaper than blended pricing?

It can be, especially if you process a high volume of transactions or your card mix includes lots of low-interchange cards like UK consumer debit cards. The savings depend on your specific transaction patterns, and businesses with mostly high-interchange cards, like US corporate rewards cards, may not see the same benefit.

What's the difference between Interchange++ and Interchange+?

Interchange+ (IC+) usually bundles scheme fees into the acquirer's markup, so you see two components. Interchange++ (IC++) separates all three, interchange, scheme, and acquirer markup, giving you the most granular view of your costs.

Do interchange fees vary by country?

Yes, interchange fees vary significantly by country, card type, and whether the transaction is domestic or cross-border. In the EU and UK, consumer card interchange is capped at 0.2% for debit and 0.3% for credit. In other markets like the US, rates can exceed 2% depending on the card.

Sources and references

1. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32015R0751