Guide
A Clear Guide to Interchange++ Pricing
8 min read · Enterprise Payments
Interchange++ (or IC++) is the most transparent — and often the most cost-effective — pricing model for card processing. Unlike blended or tiered rates, which obscure the true cost of a transaction, IC++ breaks down the cost into its three core components, giving you complete visibility into where your money goes.
The Three Components of IC++
The Interchange Fee
Paid to the customer's issuing bank (e.g., Barclays, HSBC). This is set by the card schemes (Visa, Mastercard) and varies by card type, transaction type, and merchant category. It is the largest component of the total cost and is entirely outside the control of your acquirer.
The Card Scheme Fee
Paid to the card network (Visa or Mastercard) for the use of their network infrastructure. This is a smaller, relatively fixed cost per transaction.
The Acquirer's Margin
The fee charged by your payment processor or acquirer for their services. This is the only component that is negotiable and where MunuPay's enterprise relationships deliver direct value.
Why IC++ Is Better for Enterprise Businesses
Under a blended rate model, your processor charges you a single, fixed percentage on every transaction, regardless of the actual underlying cost. This means you pay the same rate for a low-cost debit card transaction as you do for a high-cost premium rewards card. For businesses with a high proportion of debit card transactions or consumer credit cards, this represents a significant overpayment.
With IC++, you pay the actual cost of each transaction. For businesses processing significant volume, the savings compared to a blended rate can be substantial — often representing a meaningful reduction in total processing costs.
How to Calculate Your Potential Savings
To estimate the potential savings from moving to IC++, you need to understand your current blended rate and the composition of your card mix. A MunuPay cost analysis will provide a detailed breakdown, comparing your current effective rate against a projected IC++ rate based on your actual transaction data.
"For a business processing £5 million per month at a blended rate of 1.5%, moving to an IC++ model with an effective rate of 1.1% would represent a saving of approximately £20,000 per month, or £240,000 per year."
— Illustrative example. Actual savings will vary based on card mix and volume.
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