Interchange++ vs Blended Pricing: Which Saves You More in 2026?

If you’re running an online business, you already know that card processing fees, gateway charges, and hidden payment costs add up fast. But where those fees actually come from — and how they’re bundled by your payment provider — isn’t always as transparent as it should be.

That’s because every card transaction passes through a complex chain of intermediaries: issuing banks, acquiring banks, card networks, processors, and PSPs. Each one takes a cut. How those cuts appear on your monthly statement depends entirely on your pricing model.

Choosing the right pricing structure is critical — especially for high-risk industries, global merchants, subscription businesses, and companies dealing with high volume or cross-border payments, where even small fee differences can massively impact profitability.

Most merchants end up using one of two models: Interchange++ (IC++) or Blended Pricing. But which one actually reduces payment costs, improves transparency, and aligns with your risk profile?

In this guide, we break down Interchange++ vs Blended Pricing, how each model works, what fees you’re really paying, the pros and cons for different business types, and how to choose the structure that maximizes revenue and minimizes unnecessary fees.

What is Interchange Plus Plus pricing (IC++)?

Interchange Plus Plus, or IC++, is a transparent pricing model that breaks down your card processing fees into three distinct parts: 

Interchange Fee

These fees are set by card networks like Visa, Mastercard, and American Express. 

They’re paid by your acquiring bank to the cardholder’s issuing bank for each transaction. The fees compensate the issuing bank for processing the transaction, managing risk, and preventing fraud.

Interchange fees vary based on:

• Card Type: Debit, credit, commercial, and rewards cards all have different rates. Commercial and credit cards usually cost more.
• Transaction Type: Card-present transactions (where the card is physically swiped or inserted) generally have lower fees than card-not-present (online) payments due to lower fraud risk.
• Merchant Category Codes (MCC):  Affect fees, with high-risk categories typically facing higher rates due to increased fraud risk and regulatory scrutiny
• Region: Domestic payments are typically cheaper than cross-border transactions.

Typical fees range from 0.3–0.4% in Europe to around 2% in the US. These fees are set by the card schemes and are non-negotiable.

Scheme Fee (also called Assessment Fee)

Card networks charge these fees for using their payment systems and infrastructure. They cover network maintenance, security, and operational costs.

Scheme fees include:

• Assessment Fees: A percentage of each transaction, usually between 0.11% and 0.14%.
  
• Authorization Fees: A fixed cost per transaction authorization, often between $0.01 and $0.10.
  
• Network Access Fees: Charges to access the payment network, which can be per transaction or a flat monthly fee, ranging widely (e.g., $0.005 to $0.10 per transaction or $5 to $15 monthly).

These fees are standard across processors and generally non-negotiable, with minimal exceptions. 

Acquirer Markup (the “Plus Plus”)

This is the margin your payment processor or acquiring bank adds on top. It covers the services and risks they take on to process your payments.

This markup includes:

• Processing Costs: Fees for transaction authorization, clearing, and settlement.
  
• Risk and Fraud Management: Investment in tools and services that keep your payments secure.
  
• Customer Support: Handling disputes, inquiries, high chargeback ratios.
  
• Compliance: Ensuring your transactions meet regulatory standards.
  
• Profit Margin: The processor’s earnings for providing the service.

Unlike interchange and scheme fees, this markup is negotiable. High-volume or low-risk businesses can often secure better rates here.

Interchange ++ vs Interchange Plus (IC+)

The main difference between Interchange++ (IC++) and Interchange Plus (IC+) is how card scheme fees are handled.

• Interchange++ (IC++): Each of the three fees are shown separately, giving you full transparency about what you’re paying.
  
• Interchange Plus (IC+): Combines the card scheme fees with the processor’s markup into one single fee. While interchange fees remain separate, this means you don’t see exactly how much the processor charges on top of the card scheme fees.

In short, IC++ offers more detailed transparency, while IC+ simplifies the pricing but hides some fee details inside the processing markup.

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What is Blended Pricing?

Blended pricing is a simplified card processing pricing model that combines all fees into a single, flat rate per transaction. 

Instead of breaking down costs like interchange fees, scheme fees, and processor markups separately, blended pricing bundles them together for easier understanding.

Here’s how it works:

• One Flat Rate: You pay a fixed percentage or fixed fee per transaction, no matter the card type, payment method, or network involved. For example, you might pay a flat 2.9% + $0.30 per transaction.
  
• Simplified Billing: Your monthly bill shows this single rate applied to your total processed volume, making it easy to predict your payment processing costs.
  
• Less Transparency: Unlike Interchange++, you won’t see the individual fee components or how much each party in the payment chain is charging. This can make it harder to identify where your money is going or negotiate better rates.

Blended pricing works best if you want simplicity and don’t mind potentially paying a bit more. For smaller or lower-volume businesses, it can save time and headaches.

But if your business handles lots of transactions or higher-value cards, this flat-rate approach might cost you more over time.

Interchange++ vs Blended Pricing: Key Differences

With a clearer understanding of what Interchange++ and Blended Pricing is, we can put them side to side and see where they actually differ:

‍Now, let’s unpack each one in more detail and which benefit it brings to your business.

Transparency

Interchange++ lays everything bare: you see the exact interchange fees, card scheme fees, and your processor’s markup as separate line items. This level of detail gives you full visibility into where your money goes.

Blended pricing bundles all these fees into one flat rate. It’s easier to understand at a glance, but you lose insight into the individual components, making it tougher to negotiate or identify hidden costs.

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Cost Efficiency and Flexibility

Interchange++ rewards businesses that understand their payment mix and transaction types. Since fees vary by card type and transaction method, you can optimize for cost savings. Plus, you can negotiate markups as your volume grows.

Blended pricing trades flexibility for simplicity. You pay one set rate regardless of card type or transaction details. For low volume or straightforward sales, this can be convenient. However, it may cost you more if your transactions include higher-fee cards, or you process a lot of payments.

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Business Suitability

Interchange++ is generally the best fit for larger, enterprise-level, or high-volume merchants who have the resources to analyze fees and optimize their payment operations. If your business accepts a diverse mix of payment methods, processes international or cross-border cards, or wants more control over cost optimization, IC++ often delivers stronger financial results.

For high-risk industries, Interchange++ provides full visibility into exactly why fees are higher, allowing you to analyze card types, risk categories, and transaction patterns to reduce costs over time. However, this model requires active monitoring and more hands-on management.

Blended pricing is ideal for small and medium-sized businesses that prefer simplicity over granular cost control. It removes complexity by offering one predictable, flat fee, making it a strong choice for merchants who want a “set and forget” processing structure.

For high-risk merchants, blended pricing usually includes a risk premium baked into the rate, which reduces unexpected charges but can increase the overall cost per transaction because the provider absorbs the risk internally.

Negotiability

With Interchange++, the processor markup is fully negotiable. Businesses with high volume, low chargeback ratios, or strong processing history can leverage their profile to secure better rates, significantly improving long-term payment economics.

Blended pricing, on the other hand, typically comes with a fixed, non-negotiable markup included in the flat rate. Because the provider bundles all costs together, there’s far less flexibility to negotiate lower fees — even as your business grows.

Cost Predictability

Interchange++ fees vary with transaction type and card category. That means your monthly costs can fluctuate, making budgeting a bit trickier. However, it also means you’re only paying what the transactions actually cost to process.

Blended pricing offers predictable costs. You pay the same flat rate on all transactions, which simplifies budgeting and cash flow planning. But that predictability might come at the price of overpaying for lower-cost transactions.

How To Choose The Right Pricing Model For Your Business

Choosing between Interchange++ and blended pricing can feel overwhelming, but it doesn’t have to be. Focus on what matters most to your business, and you’ll make the right call.

1. Know Your Transaction Volume and Mix

• High volume with diverse card types? Interchange++ usually saves you money by tailoring fees to each transaction.
  
• Smaller volume or simple payment types? Blended pricing offers predictability and ease.

2. Decide How Much Transparency You Need

• Want to see every fee broken down clearly and control costs? Interchange++ gives full visibility.
  
• Prefer simplicity and fewer surprises on your bill? Blended pricing keeps things straightforward.

3. Consider Your Resources and Expertise

• Got time and tools to analyze and optimize your fees? Interchange++ rewards active management.
  
• Need hassle-free billing and fewer details? Blended pricing reduces accounting complexity.

4. Evaluate Your Budgeting Priorities

• If you want to pay exactly what transactions cost, and don’t mind some monthly variability, Interchange++ fits.
  
• If stable, predictable monthly fees help your cash flow planning, blended pricing is the safer bet.

5. Don’t Forget Negotiation Power

• Large or low-risk merchants can negotiate better markups with Interchange++.
  
• Blended pricing markups are typically fixed, so less room to bargain as you grow.

6. Factor in Your Risk Profile

• If you’re in a high-risk business, Interchange++ shows you exactly where higher fees and risks lie, but you’ll need to manage those costs closely.
• Blended pricing simplifies fees but often includes risk premiums baked in, which can increase your costs without clear visibility.

Tip: If you’re high-risk, choose a payment orchestration platform that understands your industry and helps control fees, no matter the pricing model.

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Next Step: Picking a POP That Matches Your Pricing Model

Okay, so you’ve picked your pricing model – what’s next?

Well, here’s the kicker: your pricing model only works if you have a payment orchestration platform that actually supports it. 

Some platforms claim flexibility but sneak in hidden fees or don’t let you optimize routing. 

PayFirmly? We play fair. Whether you’re all in on Interchange++ or prefer the simplicity of Blended pricing, we’ve got your back.

How PayFirmly Ties Into Your Pricing Strategy

Higher approval rates, lower costs

With AI-powered intelligent routing, PayFirmly finds the best-performing PSP for every transaction, based on your pricing model and geography. 

The result? Fewer declines, more revenue, and up to 30% lower processing fees.

More payment options, more conversions

Access 500+ payment methods, including cards, wallets, local and crypto payments. That extra flexibility is a big deal for blended models, where every conversion directly impacts your margins.

Clarity over chaos

Forget hidden markups and confusing statements. PayFirmly delivers real-time, line-item reporting so you always know exactly what you're paying and why – whether you're on Interchange++ or Blended.

Global-ready and omnichannel

PayFirmly supports you online, in-store, by text, or over the phone. And with cross-border infrastructure built-in, you’re set up to scale in new markets without extra complexity.

Full control, zero lock-in

Switch PSPs, shift pricing models, or expand into new channels without disruption. PayFirmly’s open platform means you’re never stuck with one setup or provider.

Supports high-risk businesses too

In a high-risk industry? No problem. PayFirmly supports complex risk profiles and helps you stay compliant without blocking your growth.

Which Pricing Model Saves You More in The Long Run?

So, in the Interchange++ vs Blended Pricing debate – who wins?In reality, there’s no one-size-fits-all winner — the “best” pricing model depends entirely on your business structure, payment volume, and risk profile.In case your enterprise handles numerous transactions, works with different credit card types, or conducts business internationally, Interchange++ pricing may result in remarkable cost decreases.

The pricing's clarity allows for monitoring of each element of cost, interchange fees, scheme fees, and markup, which in turn enables payment routing optimization, negotiation of better rates, and cutting down on unnecessary processing costs.However, in case you prioritize simplicity, predictability, and easy budgeting, or if your team prefers not to deal with complex pricing schemes, Blended Pricing is mostly the preferred choice.

You get one flat, predictable charging rate, which lowers your operational workload and consequently makes it easier for you to estimate your monthly expenses.In the end, making the right decision depends on recognizing your transaction habits, expansion aspirations, and operational strength. Looking at your payments together with the cost involved, it will be easier to know which model will give you more savings, both in the present and in the year 2026, when the rules of payment processing and card schemes will have changed further.

As long as you have a payment orchestration platform, like PayFirmly, that supports your chosen pricing model transparently and gives you the tools to monitor and optimize costs, you’re set up for success.

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