The four pricing models used in the UK
Almost every UK card payment quote fits into one of four pricing models. The names vary between providers, but the underlying mechanics are consistent, and knowing which model you're being offered is more important than the headline rate itself.
Blended (fixed rate)
One percentage across all card types, plus optional per-transaction fee. Simple to read; hides the true cost of premium and international cards.
Interchange Plus (IC+)
Interchange pass-through + scheme fees + a stated acquirer margin in basis points. Transparent and usually cheaper at steady volume.
IC++ (Interchange++)
Same as IC+, but scheme fees are also broken out as their own pass-through line. Common in enterprise and higher-volume mid-market contracts.
Pay-as-you-go / flat-fee
Single all-in percentage with no fixed monthly costs and typically own-your-terminal hardware. Best for low, seasonal or unpredictable turnover.
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Check If I'm OverpayingWhat each model actually looks like in the wild
Concrete examples make the difference obvious. Below is the same £15,000 monthly card turnover priced under each model, using a card mix that's realistic for a UK independent retailer (80% consumer debit, 12% consumer credit, 6% commercial, 2% international).
| Model | Headline rate | Fixed monthly costs | Effective rate | Total monthly cost |
|---|---|---|---|---|
| Blended (mid-market) | 1.35% + 5p | £20 terminal + £5 PCI | ~1.55% | ~£232 |
| Interchange Plus | IC + scheme + 0.35% + 3p | £20 terminal + £5 PCI | ~1.15% | ~£172 |
| IC++ (enterprise) | IC + scheme + 0.20% + 2p | £20 terminal + £5 PCI | ~1.00% | ~£150 |
| Pay-as-you-go | 1.69% flat | £0 (own terminal) | 1.69% | ~£253 |
Which model suits which business
There is no universally best model — the right answer is a function of monthly turnover, average transaction value, card mix and how much variability there is month to month.
- ●Under £2,500 / month: pay-as-you-go almost always wins because fixed costs on any other model eat the margin.
- ●£2,500 – £10,000 / month: a well-priced blended rate usually beats pay-as-you-go and simplifies bookkeeping.
- ●£10,000 – £75,000 / month: Interchange Plus typically wins by 20–60 basis points if your card mix is consumer-heavy.
- ●£75,000+ / month: IC++ with negotiated margin becomes viable, along with same-day settlement and bespoke terms.
- ●High commercial / B2B card mix: IC+ is usually preferable regardless of size — blended pricing overcharges you on premium cards.
- ●Highly seasonal: pay-as-you-go or a contract with no monthly minimum protects quiet months.
How UK acquirers set their margin
On a blended rate the acquirer's margin is whatever is left after interchange and scheme fees. On IC+ it's the explicit basis-point figure quoted. Either way it typically ranges from 15 basis points (large enterprise) to 90+ basis points (small business on a legacy contract).
Modern UK entrants such as Dojo, Teya, SumUp and Zettle publish flat-rate pricing partly because it removes the need to negotiate the margin. Traditional acquirers such as Worldpay, Barclaycard and Elavon quote either blended or IC+, and the acquirer margin is where almost all of the negotiation happens.
Frequently asked questions
Is a lower headline rate always better?
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What does IC++ mean?
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Can I negotiate my acquirer margin?
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Do card machine providers like SumUp and Zettle use interchange pricing?
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Key takeaways
- ●Blended pricing hides the true cost of premium and international cards.
- ●Interchange Plus is usually cheapest for consistent, consumer-heavy volume.
- ●Pay-as-you-go wins at low or seasonal turnover; IC++ wins at enterprise scale.
- ●Fixed monthly costs matter more than the headline percentage at low volume.
- ●Acquirer margin is the only truly negotiable component of any UK card processing quote.