Interchange++
Interchange++ is a pricing model in payment processing where merchants are charged based on the actual fees set by , plus an additional markup or percentage fee. Interchange fees are fees paid by the merchant's to the cardholder's for each transaction.
When a card transaction is processed through an acquirer, there are three different cost components:
- The interchange fee that goes to the card-issuing bank
- The scheme fee that goes to Visa or Mastercard (first +)
- The acquirer fee (second +)
Interchange++ model provides transparency by breaking down the costs associated with card transactions, allowing merchants to see the specific interchange fees and the additional fees applied by the . While this model offers transparency, merchants should carefully analyze the total cost, including the interchange fees and the markup, to determine the most cost-effective pricing structure for their business.
Interchange++ structures are commonly used in the business-to-business (B2B) payment processing sector, providing merchants with a clearer understanding of the underlying costs associated with different card transactions.
