Blended pricing
Also called flat rate pricing
Blended pricing is a single flat rate charged on every card transaction regardless of card type, so a debit card and a business credit card cost the merchant the same. It trades some cost efficiency for complete predictability.
The provider averages out the underlying interchange and scheme costs across all card types and charges one rate on top.
On cheap cards you pay slightly more than the transaction cost; on expensive ones, slightly less. Over a normal mix of customers it evens out.
The advantage is that you can multiply your turnover by one number and know your cost. For most small businesses that is worth more than the last few basis points.
Why it matters to you
A blended rate is the only pricing model where the number on the website is the number on your statement. Check whether the quote is genuinely blended or whether commercial cards are carved out.
Work out what you’re actually paying.
Whatever your statement calls it, the only figure that matters is total cost divided by total takings. Our calculator works that out from your own numbers.
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