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.
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Check If I'm OverpayingSide-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 |
| Best for | Under £15k/month, simple mix | £20k+/month, mixed card types |
| 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
Smaller and seasonal businesses often pay less on a simple pay-as-you-go blended model because there are no fixed costs. Established businesses with steady monthly turnover usually pay less on Interchange Plus once volume is consistent.
There is no universally better model. The right answer depends on monthly turnover, card mix and average transaction value.
A worked comparison
£40,000/month, 70% consumer debit, 20% consumer credit, 10% commercial. Blended at 1.1%: £440. Interchange Plus at (average blended interchange 0.35% + scheme 0.10% + margin 0.35% + 3p) = ~0.85% effective = £340. Interchange Plus saves £100/month here.
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.
Frequently asked questions
Can I switch pricing model with the same provider?
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Is IC+ always more transparent?
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What does 'Plus' mean?
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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.