How Interchange++ works
Each plus is one layer added to interchange. Interchange depends on the card: consumer or commercial, debit or credit, domestic or foreign. Scheme fees depend on the network and on details such as the region and how the payment was made.
The acquirer's markup is the fixed part, quoted as a percentage, a fee per payment or both. The first two layers are known only once the payment has cleared, so the merchant sees the exact cost afterwards, on a statement that lists each layer by payment or by card type.
Who Interchange++ suits
Larger merchants and platforms, whose volumes justify reading detailed statements and whose card mix costs less than the average a blended rate assumes. A merchant with many domestic consumer debit cards pays less than under one flat percentage, and a merchant with many foreign commercial cards can pay more.
For a payment facilitator or a gateway that resells acquiring, Interchange++ is usually the buy rate. The reseller then decides whether to pass the same structure on, or to quote its own merchants a blended price and carry the difference.
What Interchange++ asks of a billing system
The cost of each payment arrives after the sale, in clearing files and scheme fee reports. Billing a merchant on Interchange++ means matching those reports to each payment, which is a reconciliation and ledger task as much as a pricing choice.
Interchange++, Interchange+ or blended?
- Interchange+
- Interchange passed through, plus one markup that includes the scheme fees. The acquirer carries the risk that scheme fees change.
- Blended pricing
- One rate for all cards, whatever each payment costs the acquirer. Simple to forecast, and the acquirer keeps or loses the difference.
Where Interchange++ shows up in a platform
Modules that do the work
- Card acquiringCard acceptance on the phone, in store and online, through the acquirer you choose.
- LedgerThe double-entry book of record behind every balance, fee and transfer.
- Merchant onboardingBusiness sign-up, verification and underwriting, from application to first payment.
- Analytics & monitoringProduct analytics, attribution, engagement and crash reports, on a tracking plan you control.