Learning • 7 min read

How Card Payment Pricing Works in the UK

Blended, Interchange Plus, IC++ and pay-as-you-go pricing explained, with the trade-offs each model brings.

The three main pricing models

Blended

One simple rate across all card types. Easy to read, but hides the true cost of more expensive card categories.

Interchange Plus (IC+)

Interchange + scheme fee + a transparent acquirer margin. Generally fairer for steady-volume businesses.

Pay-as-you-go

A single percentage with no fixed costs. Best for low or unpredictable monthly card turnover.

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Which model suits which business?

There is no universally best model. Smaller, intermittent traders often pay less on pay-as-you-go. Established businesses with consistent turnover usually pay less on Interchange Plus.

The right answer is a function of your monthly turnover, average transaction value and card mix - which is exactly what a statement review measures.

Key takeaways

●Blended pricing is simple, but obscures the cost of premium and international cards.
●Interchange Plus is generally more transparent for steady-volume businesses.
●Pay-as-you-go is usually cheapest for low-turnover or seasonal businesses.

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