What each model means
Blended
A single percentage covering interchange, scheme fees and the acquirer margin. Simple to read, but hides the cost of premium and international cards.
Interchange Plus
Interchange and scheme fees are passed through at cost, with a separate, transparent acquirer margin. Easier to verify and usually fairer at scale.
Side-by-side comparison
| Feature | Blended | Interchange Plus |
|---|---|---|
| Transparency | Low - one number | High - all three components shown |
| Ease of comparison | Easy at headline level | Requires effort but honest |
| Potential fit | Businesses prioritising simple reconciliation | Businesses wanting underlying cost components itemised |
| Cost of premium/commercial cards | Absorbed - you pay average | Passed through - you pay actual |
| Margin visibility | Hidden | Shown per transaction |
| Scheme fee changes | Absorbed by provider (or not) | Passed through automatically |
Which one suits which business
Some smaller or seasonal businesses prefer a simple pay-as-you-go blended model with limited fixed costs. Some established businesses prefer Interchange Plus because it exposes the underlying components. Neither preference establishes which will cost less.
There is no universally better model. The right answer depends on monthly turnover, card mix and average transaction value.
A worked comparison
In this hypothetical example: £40,000/month, 70% consumer debit, 20% consumer credit and 10% commercial. Blended at 1.1% is £440. An illustrative Interchange Plus build-up producing a 0.85% effective rate is £340—a £100 difference in this example only.
Flip the mix to 40% commercial cards and Interchange Plus rises to ~1.4% because commercial interchange is uncapped. Blended at 1.1% now wins - unless the provider raises it after seeing your card mix.
Key takeaways
- Blended is simple but obscures the cost of premium and international cards.
- Interchange Plus is generally more transparent for steady-volume businesses.
- Effective rate is the only honest way to compare the two.
- Card mix decides which model wins for your specific business.
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