Interchange ++

Interchange ++ is a pricing model in payment processing where merchants are charged based on the actual interchange fees set by card networks plus an additional markup or percentage fee. Interchange fees are fees paid by the merchant’s acquiring bank to the cardholder’s issuing bank 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 payment processor. 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.

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