What is Interchange++?

in - ter - change plus plus

noun

Interchange++ (IC++) is a payment pricing model in which merchants pay the actual interchange fee set by card networks and issuing banks, plus the payment processor's markup and any applicable scheme or assessment fees. Rather than combining all costs into a single rate, Interchange++ separates each component of the transaction cost, providing greater transparency into how card payments are priced.

Interchange++ is commonly used by payment service providers (PSPs), payment gateways, and acquiring banks, particularly for businesses processing large transaction volumes or operating across multiple markets.

How does Interchange++ work?

Every card payment consists of several cost components.

With an Interchange++ pricing model, these components are charged separately:

Interchange fees, paid to the card-issuing bank.
Scheme or assessment fees, charged by the card network.
Processor markup, charged by the payment provider for processing the transaction.

Instead of paying a single blended transaction fee, merchants can see how much each component contributes to the total processing cost.

Why do businesses choose Interchange++?

Interchange++ offers greater visibility into payment costs, making it easier for businesses to understand how processing fees are calculated.

Many merchants choose this pricing model because it:

provides transparent transaction pricing;
reflects the actual cost of processing each card payment;
makes it easier to analyze payment costs across card types and markets;
supports cost optimization as transaction volumes grow;
helps businesses compare payment providers more effectively.

For larger merchants or businesses with international sales, this level of transparency can make it easier to identify opportunities to improve payment performance and manage processing costs.

Interchange++ vs. blended pricing

Although both models determine how merchants are charged for payment processing, they differ in how fees are presented.

With Interchange++ pricing, interchange fees, scheme fees, and the processor's markup are listed separately for each transaction.

With blended pricing, all processing costs are combined into a single transaction fee, making pricing simpler to understand but providing less visibility into the underlying cost structure.

The most appropriate pricing model depends on a business's transaction volume, payment mix, geographic footprint, and reporting requirements.

Want to read more on this topic? Check out our related resources:

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