What is Blended Pricing?

Every card payment includes several underlying costs, such as interchange fees paid to the issuing bank , card network fees, and payment processing charges.

With a Blended Pricing model, these individual costs are consolidated into a single transaction fee. Rather than receiving a breakdown of each cost component, merchants pay one agreed rate for eligible card transactions.

This simplified pricing structure can make it easier for businesses to estimate payment processing costs and reconcile transactions without reviewing multiple fee categories.

Blended Pricing is often preferred by businesses looking for a predictable and easy-to-manage payment pricing model.

Some of its advantages include:

• a simple, easy-to-understand pricing structure;
• predictable payment processing costs;
• simplified reporting and reconciliation;
• less administrative complexity compared to pricing models with separate fee components.

For many small and medium-sized businesses, Blended Pricing offers a practical way to manage payment costs without analyzing the individual fees behind every transaction.

Blended Pricing and Interchange++ are two of the most common payment pricing models, but they differ in how transaction costs are presented.

With Blended Pricing, merchants pay a single transaction fee that includes all payment processing costs.

With Interchange++, interchange fees, card network fees, and the payment provider's markup are charged separately, giving merchants greater visibility into the actual cost of each transaction.

Businesses processing high transaction volumes or operating internationally may prefer the transparency of Interchange++, while others may value the simplicity and predictability of a blended pricing model.