Learning • 5 min read

Merchant Acquirer Margin Explained

The acquirer's margin is where the real cost comparison happens on Interchange Plus. Here's how to isolate it.

Interchange, scheme, margin

A card payment is made up of three costs: interchange (paid to the card-issuing bank), scheme fees (paid to Visa/Mastercard) and the acquirer's margin. Only the third is negotiable.

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Why headline rates mislead

A blended rate hides the margin because interchange, scheme and margin are combined. Two providers can quote the same headline rate with very different margins.

How to isolate the margin

On an Interchange Plus statement the margin is shown as 'processing fee' or 'acquirer fee' - typically pence per transaction plus a small percentage. That number is what you're actually comparing between providers.

Key takeaways

●Only the acquirer's margin is negotiable.
●Interchange Plus shows the margin openly; blended pricing hides it.
●Compare margins, not headline rates, when benchmarking providers.

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