Interchange, scheme, margin
A card payment is made up of three costs: interchange (paid to the card-issuing bank), scheme and processing fees, and the acquirer's own charge. The provider's own element is the part directly set in your commercial offer.
Consumer interchange caps apply only in defined circumstances. Use the current scheme schedules and your statement for the pass-through components; do not estimate provider margin by subtracting a generic scheme-fee allowance.
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 provider's charge
On an Interchange Plus statement the provider's element may be shown as a processing or acquirer fee, sometimes with both a percentage and a per-transaction amount. Use the labels and definitions in the pricing schedule.
There is no dependable public market-average margin for every merchant profile. Compare the full provider charge across written quotes using your own card mix and transaction count.
Margin games to watch for
Some providers quote a low headline margin but charge separately for authorisation, PCI, scheme fee 'handling' or monthly account fees - loading the effective margin without touching the quoted number.
Always convert the full quote into an effective rate on your actual volume and mix. That is the honest comparison.
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.
- Include fixed monthly and per-item fees when comparing the provider's commercial charge.
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