Interchange++ (IC++)

The name describes the three parts: interchange, paid to the issuer; plus scheme fees, paid to the card network; plus the provider's markup, which may be a percentage, a fixed fee per transaction or both. Because interchange and scheme fees vary by card type, region and channel, the total cost changes from one transaction to the next, and statements show the breakdown. A related model, interchange plus (IC+), passes through interchange but bundles scheme fees into the provider's margin.

The main advantage is transparency. The merchant benefits directly when customers use cheaper cards, such as capped consumer debit cards in the EU and UK, instead of paying a blended rate that includes a buffer for expensive cards. It also makes quotes easier to compare, because providers are competing on their own margin. In the EU and UK, acquirers must itemise interchange and scheme fees by card category and brand unless the merchant opts for blended pricing, which supports IC++ contracts.

The downsides are less predictable costs and more complex reconciliation, since scheme fees alone include many small charges. Check whether the provider passes scheme fees through at cost or adds a markup, how cross-border and currency conversion fees are handled, and whether there are monthly minimums. IC++ tends to suit merchants with meaningful volume or many low-interchange cards; very small businesses may prefer a simple flat rate.