Interchange plus
Also called IC+, cost plus pricing
Interchange plus is a pricing model where a merchant pays the actual interchange and scheme fees on each transaction, plus a fixed margin for the provider. The cost varies by card type, and the provider’s margin is stated separately.
It is the most transparent way to price card acceptance, because you can see exactly what went to the card issuer and exactly what your provider kept.
It is also unpredictable month to month. A week with a lot of business credit cards will cost more than a week of consumer debit, even at identical turnover.
It generally suits high-volume merchants who can absorb the variability and want the lowest possible cost. Smaller businesses usually prefer a blended rate they can put in a spreadsheet.
Why it matters to you
Interchange plus can be cheaper at scale, but only if you actually read the statements. If you won’t, a blended rate will cost you less in attention and probably in money.
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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