What is Interchange Plus Plus (IC++)?

Interchange Plus Plus (IC++), also known as interchange++ pricing, refers to a transparent and itemised payment processing model that, in simple terms, breaks down each transaction into its core components:

This model gives payments decision-makers at mid-size or large merchants full visibility into where their money is going for each card transaction and provides a detailed breakdown of fees.

As card payments dominate the retail landscape and margins tighten, IC++ empowers businesses to analyse, optimise, and strategically manage their processing costs.

For businesses processing a high volume of payments, understanding exactly what they are being charged for becomes essential to managing costs effectively. IC++ allows for this level of detail and includes insights into Visa and Mastercard fees, ultimately providing greater transparency.

This makes the IC++ pricing model an increasingly popular choice among medium and large enterprises.

Understanding Payment Processing Fees

When a customer taps or inserts their card, several organisations work together to approve and settle the transaction.

These include the cardholder's bank, the card network (such as Mastercard or Visa), and the payment processor or acquiring bank that handles the transaction on your behalf.

Each of these entities charges a fee.

In IC++ pricing, the model works by separating these into three lines: interchange, scheme, and processor markup.

This is different from flat-rate or blended pricing, where these charges are bundled into a single fee. While the bundled model is simpler, it often hides the true cost breakdown and makes it harder for businesses to analyse their payment expenses.

The interchange fee

The interchange fee goes to the issuing bank, the bank that gave your customer their card.

It is usually the largest of the three lines, and it is the one neither you nor your processor can negotiate: card networks publish the rates, and the applicable rate depends on the card type, the region, and whether the payment is card-present or card-not-present.

In the EU and the UK, consumer card interchange is also capped by regulation, which is why domestic consumer transactions cost noticeably less than commercial or non-European ones.

The card scheme fee

The scheme fee is what Visa or Mastercard charge for running the network the transaction travels across, covering authorisation, clearing, and settlement messaging.

It is smaller than interchange but made up of many small components, and because it is set by the network rather than by your provider, it also passes straight through in interchange plus plus pricing.

The acquirer markup

The acquirer fee, or processor markup, is your payment provider's own margin for handling the transaction.

This is the only one of the three lines that is genuinely negotiable, which is why an itemised statement matters: once interchange and scheme fees are visible separately, you can compare providers on the part they actually control.

Benefits of IC++ Pricing for Mid-Size and Large Merchants

IC++ pricing offers several advantages, especially for businesses looking to improve cost control and data visibility.

It is commonly favoured by larger merchants or those operating in industries with tight margins and a need for robust reporting, especially when dealing with consumer cards.

Transparency

Unlike other pricing models that offer a single rate and leave merchants guessing about what's included, IC++ breaks down each transaction's cost line by line.

You can see the actual interchange fee (which can vary depending on card type and transaction channel) and the scheme fee, all separately listed on your statement.

When you can see the exact interchange fee and exactly where your money is going, you're in a much stronger position to make informed decisions about how to reduce costs.

Fairness

IC++ is fundamentally a cost-plus model, which means you are charged the actual base cost of each transaction, plus a fixed markup from your processor.

This ensures a fairer pricing structure compared to flat-rate models, which often inflate costs to cover 'averages' based on the interchange rate across all transaction types.

For example, a business that processes mostly debit card transactions (which carry lower interchange fees) may be overpaying under a flat-rate model.

IC++ eliminates this imbalance by aligning your fees with the true cost of the transaction.

This is particularly beneficial for merchants with predictable transaction types, such as supermarkets or online retailers with consistent customer payment behaviour, as well as those managing cross-border transactions.

Cost Optimisation

As IC++ gives you visibility into the fees charged per transaction, it becomes far easier to spot inefficiencies or high-cost trends.

If you discover that certain cards, for instance, commercial or premium credit cards, incur significantly higher fees, you may decide to encourage alternative lower-cost payment methods that can help achieve lower fees or negotiate better terms.

Over time, this allows businesses to actively manage and reduce their cost per transaction.

You can also use this insight to tailor your payment strategy across regions and customer segments.

It also lets you work out your effective rate, the total cost of processing divided by total volume, which is the only fair way to compare an IC++ quote against a flat-rate one.

A flat rate of 1.9% may look competitive until an itemised statement shows your real blended cost is lower than that.

Improved Reporting

Detailed reporting is an essential part of modern business operations, especially in finance and eCommerce.

IC++ statements offer transaction-level fee breakdowns that can be easily imported into accounting or business intelligence software.

This allows for more accurate forecasting and enhanced visibility over margins and performance by payment channel, including the processing fee.

For enterprise merchants or those preparing for audits, the ability to report on each fee type is a valuable compliance asset.

It also helps finance and strategy teams understand how payment costs impact profitability across products or even over periods.

Drawbacks of IC++ Pricing

While IC++ offers significant benefits, it may not be suitable for every merchant. Like any pricing model, it comes with trade-offs that should be carefully considered.

Complexity

IC++ introduces complexity.

Instead of receiving one simple transaction rate, you are given a multi-line statement detailing different fees per transaction type; this is the main difference compared to other pricing models.

For smaller businesses without a dedicated finance team or technical support, interpreting these statements may be time-consuming or confusing, especially when compared to a fixed-rate pricing model.

This complexity can lead to misunderstandings unless merchants are educated about the structure or provided with supportive tools.

Some payment providers offer dashboards or consultancy services to help demystify the data, but this depends on your processor.

Variable Costs

One of the most challenging aspects of IC++ is the variability of its cost structure.

Since interchange and scheme fees are set by external parties like the card issuer and vary based on factors like card type or transaction region, the total fee for each transaction can change significantly.

This means your processing costs may fluctuate from month to month, which makes it harder to forecast or budget consistently.

For businesses that prefer predictable costs (such as subscription services or event-based businesses), this variability could be a drawback unless they're prepared to monitor it closely.

Requires Volume to Maximise Value

IC++ pricing becomes more valuable as your transaction volume increases.

This is because the benefits of transparency and optimisation compound over time and at scale.

A company processing hundreds of thousands of transactions per month, including international transactions, may save significantly by acting on IC++ insights.

However, for smaller businesses or those with fewer transactions, the additional effort required to manage IC++ pricing might not deliver a strong return.

In such cases, flat-rate or blended pricing may be more convenient even if it's slightly more expensive, due to ease of use.

IC++ vs Other Pricing Models

When comparing card processing models, it is important to consider not just the cost, but also the control and long-term suitability of each approach.

IC++ vs IC+ (interchange plus)

The two pluses in IC++ are what separate it from interchange plus (IC+).

Under IC+, the interchange fee is passed through separately but the scheme fee is folded into the provider's markup, so you see two lines instead of three.

That single missing line is where cost can hide: because scheme fees change when networks update their tables, an IC+ markup can absorb increases you never see itemised.

Interchange++ pricing exposes both external costs, leaving only the markup as the provider's own charge.

IC++ vs flat-rate and blended pricing

IC++ pricing, by definition, stands out by offering complete transparency in online payments.

It's not the easiest to manage, but for businesses that prioritise insight, IC++ provides the most accurate reflection of your actual payment processing costs.

Is IC++ Pricing Right for Your Business?

Whether or not IC++ is the right pricing model depends on your infrastructure and appetite for data-led decision-making.

For businesses that handle a high volume of transactions, especially across multiple countries or with varied payment methods through various payment service providers, the cost visibility IC++ offers can lead to savings and smarter operations.

You may also benefit from IC++ if your business has a strong finance or operations team capable of interpreting complex statements and identifying areas for improvement, allowing for a more strategic approach in payment management.

Card mix is the other deciding factor.

If most of your customers pay with domestic consumer debit cards, which carry the lowest interchange, a flat rate averages you up towards the cost of commercial and cross-border cards you rarely accept.

If your mix skews the other way, the gap narrows and the case for interchange plus plus rests more on reporting than on price.

However, if you're a smaller business with limited capacity to review payment data, or if predictability is more important than optimisation, then a flat or blended pricing model may be more suitable until you scale further.

Why Choose DECTA

At DECTA, we specialise in modern, scalable payment solutions designed for businesses that demand transparency and control.

Our IC++ pricing model is built for businesses looking to grow sustainably by understanding and managing every element of their processing costs.

We provide detailed transaction-level reporting, so you always know what you're paying for, whether it's interchange, scheme fees or our competitive markup.

DECTA's infrastructure is robust and fast to integrate.

We offer multi-currency support and operate across more than 32 countries, helping our clients expand their reach while maintaining cost efficiency.

Our dedicated account managers and technical teams work closely with you to optimise your processing transactions and reduce hidden costs by making data-backed decisions that boost your bottom line.