Interchange is a small fee paid by a merchant's acquirer to a cardholder's bank (issuer) to compensate the issuer for the benefits merchants receive when they accept electronic payments.
For a full breakdown of each of the card schemes Interchange Fees, please refer to:
At CashFlows we price using an Interchange Plus Plus fee structure. Interchange Plus Plus pricing works by adding a constant, flat margin on top of Interchange and Scheme Fees. So typically, Interchange Plus Plus pricing will also be written in the three component format, with a percentage fee and per-transaction fee above Interchange and Scheme Fees. This allows us to provide a clear pricing plan that displays the margin we charge and how it remains consistent when you process different types of cards and transactions.
To fully understand the cost of a sales transaction you will need to know how the Merchant Service Charge in broken down into its cost components:
In this example, lets take a £100 sale where the customer is paying with a Visa Debit Card, they have securely authenticated themselves and their card is issued from the same country as yourself.
|CARD TYPE||INTERCHANGE||SCHEME FEE||PROCESSING COST||MERCHANT SERVICE CHARGE|
|Secure Consumer Debit Card||0.21 GBP||0.04 GBP||0.30 GBP||0.55 GBP|