Interchange-plus vs blended UK card-acquiring pricing
Two UK card-acquiring pricing models. Blended (a single rate per transaction) wins below ~£25k annual / £4k monthly volume because the simplicity outweighs the rate saving. Interchange-plus (transparent line-by-line costs plus a fixed markup) wins above, often by 30-100 basis points. Consumer-debit interchange is regulated at 0.2% in the UK; IC+ exposes that favourable rate, blended hides it.
The two models in 60 seconds
Blended
One rate per transaction, regardless of card type. Examples: SumUp 1.69%, Square 1.75%, Zettle 1.75%, Dojo 1.4% to 1.9% depending on volume tier. The acquirer absorbs the interchange variation across card types and offers a fixed price.
Interchange-plus (IC+)
Three line items per transaction: interchange (set by Visa or Mastercard), scheme fee (network operator cut) and acquirer markup (the fixed bit you negotiate). Examples: Stripe 1.4% + 20p UK card-present (which decomposes into ~0.2% interchange + 0.05% scheme + ~0.95% markup + 20p), Adyen IC + 0.30% + £0.10. The merchant's actual cost depends on the card mix.
UK interchange rates (2026)
| Card type | Interchange (UK domestic) | Source / status |
|---|---|---|
| Consumer debit (Visa, Mastercard) | 0.20% | Regulated under retained EU 2015/751 |
| Consumer credit (Visa, Mastercard) | 0.30% | Regulated under retained EU 2015/751 |
| Commercial debit | ~1.20% | Unregulated; scheme-set |
| Commercial credit | 1.50% to 2.50% | Unregulated; scheme-set |
| AMEX (consumer or commercial) | ~1.40% to 2.50% | Different model (closed-loop); priced separately |
| UK-EEA cross-border (Visa, Mastercard consumer) | 0.2% to 1.50% | Subject of current PSR cap appeal; see cross-border guide |
Interchange rates verified against Visa and Mastercard public schedules May 2026. Subject to scheme update.
Worked example: where IC+ overtakes blended
A UK retail merchant with £180k annual volume, 90% consumer-debit, 5% consumer-credit, 5% commercial.
Blended (Dojo at 1.5%)
£180k × 1.5% = £2,700/year MSC + £20/month × 12 = £240 Total: £2,940 (1.63% of volume)
IC+ (Adyen at IC + 0.30% + £0.10)
Card-mix interchange: 90% × 0.2% = 0.18% 5% × 0.3% = 0.015% 5% × 1.5% = 0.075% Effective interchange: 0.27% Scheme fee: ~0.10% Acquirer markup: 0.30% Effective MSC %: 0.67% £180k × 0.67% = £1,206/year MSC + ~3,000 transactions × £0.10 = £300 + £25/month × 12 = £300 Total: £1,806 (1.00% of volume)
IC+ saves £1,134/year (38% lower TCA) at this volume and card mix. The IC+ saving comes from the consumer-debit interchange (0.2%) being exposed; blended buries it.
Where blended wins
Three patterns favour blended:
Pattern 1: low volume
At £4k monthly volume, IC+ markup plus monthly fee plus per-transaction flat usually outweighs the rate saving. SumUp at flat 1.69% beats most IC+ deals at this volume because the £20 monthly fee on IC+ adds 0.5% to TCA.
Pattern 2: commercial-card-heavy
If 50%+ of volume is commercial credit cards (interchange 1.5%+), the blended cross-subsidy works in your favour. Dojo at 1.5% blended beats IC + 0.30% which would expose the 1.5% commercial interchange directly. Some B2B trade counters fit this pattern.
Pattern 3: simplicity priority
Some merchants prefer the predictability of a single rate. The TCA difference at £40k-£60k monthly is 10-25 basis points; for some operators, the simpler statement reconciliation is worth that.
Where IC+ wins
Three patterns favour IC+:
Pattern 1: above £25k monthly volume, consumer-debit-heavy
The classic case. UK retail (cafés, shops, hospitality) is 80%+ consumer-debit. The 0.2% regulated interchange is the cost-anchor; IC+ exposes it, blended hides it.
Pattern 2: e-commerce with international mix
E-commerce attracts more cross-border and commercial-card mix than physical retail. IC+ statements show exactly which transactions cost what; blended gives you no insight into where the cost sits.
Pattern 3: high-ticket retail
Jewellers, dentists, hotels and similar merchants benefit from IC+ because higher-ticket transactions carry more cost variance. The IC+ statement lets you see (and address) the high-cost transactions.
UK acquirer pricing models, May 2026
| Acquirer | Default model | Notes |
|---|---|---|
| SumUp | Blended only (1.69%) | No IC+ option |
| Square | Blended only (1.75%) | No IC+ option |
| Zettle | Blended only (1.75%) | No IC+ option |
| Dojo | Blended (1.4%-1.9%) | IC+ available on enterprise contracts above £100k monthly |
| Stripe | Blended (1.4% + 20p UK CP) | IC+ negotiable above £100k monthly volume |
| Adyen | IC+ standard | Markup negotiable; targets above £30k monthly |
| Worldpay | IC+ standard for above ~£20k monthly | Blended on lower-volume legacy contracts |
| Barclaycard, Lloyds Cardnet | IC+ standard for above ~£20k monthly | Bank-relationship-led pricing |
The £25k annual / £4k monthly threshold
This is the practical breakpoint where pricing-model choice becomes material. Below: blended is almost always cheaper. Above: model the TCA both ways.
- Below £25k annual (~£2k monthly): stay no-contract blended. SumUp, Square or Zettle.
- £25k to £100k annual (£2k-£8k monthly): SumUp blended or Dojo blended. IC+ does not pay back yet.
- £100k to £300k annual (£8k-£25k monthly): mixed; depends on card mix. Run TCA both ways.
- £300k to £1m annual (£25k-£80k monthly): IC+ usually wins; switch to Stripe (custom), Adyen or a tier-one.
- Above £1m annual (£80k+ monthly): always IC+. Negotiate the markup.
How to negotiate IC+ markup
- Have your annual volume number ready. Acquirers price markup against volume tiers.
- Have your card mix breakdown. Consumer-debit-heavy merchants can push for lower markup because the volume is uncontroversial.
- Quote competitor offers. Adyen will undercut Stripe on markup at high volume; Worldpay will match Adyen.
- Ask for a 12-month rate guarantee. Prevents stealth markup creep.
- Get scheme fees broken out separately. Some "IC+ + 0.30%" deals load scheme fees into the markup, distorting the headline.
- Use our TCA calculator to verify before signing.
Cross-link: related learn pages
- Total Cost of Acquiring calculator for modelling both models on your volume.
- UK cross-border interchange guide for the EEA card-mix question.
- Visa-Mastercard cross-border update 2026 for the broker-vs-bank perspective.
- Which card machine tool for the right acquirer pick by trade.
Frequently asked questions
What is interchange-plus pricing?
Interchange-plus (IC+) is a transparent UK card-acquiring pricing model. The merchant pays the actual interchange fee (set by Visa or Mastercard, varies by card type) plus a fixed acquirer markup (typically 0.20% to 0.50%). Each transaction's exact cost depends on the card type used. The acquirer statement breaks the costs out line by line.
What is blended pricing?
Blended pricing is a single rate (e.g. 1.69% per transaction) regardless of card type. The acquirer absorbs the interchange variation and offers a fixed price for simplicity. Examples: SumUp 1.69%, Square 1.75%, Zettle 1.75%. Dojo offers blended at 1.4% to 1.9% depending on volume.
Which is cheaper, IC+ or blended?
It depends on volume and card mix. Below £25k annual / £4k monthly volume, blended usually wins because IC+ markups plus monthly fees outweigh the rate gap. Between £4k and £8k monthly, the two models are within 5-10 basis points of each other. Above £25k monthly, IC+ materially wins because consumer-debit interchange is regulated at 0.2% in the UK; blended hides this favourable rate. Above £80k monthly, IC+ saves 30-100 basis points typically.
Is the £25k annual threshold a regulatory rule?
No. It is a practical pricing-model breakpoint, not a regulatory threshold. Below ~£25k annual card volume, the per-transaction administration of IC+ statements outweighs the rate saving. Above, the rate saving outweighs the administration. Different acquirers will have slightly different breakpoints (Stripe at ~£100k, Adyen at ~£50k) but the general shape holds.
What does an IC+ statement look like?
Per transaction: interchange (e.g. 0.20% for consumer debit, 0.30% for consumer credit, 1.50% for commercial credit) + scheme fee (0.05% to 0.20%) + acquirer markup (0.20% to 0.50%) + per-transaction flat fee (0p to 10p). Per month: monthly fee, gateway fee, PCI fee. The statement is line-by-line transparent.
Are there hidden costs in blended that disappear in IC+?
Yes. Blended bakes in cross-subsidisation: low-cost consumer-debit transactions subsidise high-cost commercial-credit transactions for the acquirer. If your card mix is consumer-debit-heavy (most UK retail), blended over-charges you. If your mix is commercial-credit-heavy (some B2B), blended under-charges you. IC+ removes the cross-subsidy.
Does the UK Interchange Fee Regulation cap interchange?
Yes for consumer cards. Under the retained UK Interchange Fee Regulation (originally EU 2015/751, retained post-Brexit), consumer-debit interchange is capped at 0.2% and consumer-credit at 0.3% on UK domestic transactions. Commercial cards (B2B credit, business debit) are uncapped and run 1.0% to 2.5%. Cross-border interchange (UK-EEA) is the subject of the current Payment Systems Regulator appeal.
How do I switch from blended to IC+?
Talk to your existing acquirer first; many will offer IC+ on request once you cross ~£25k monthly. If they will not, switch to one that does (Stripe, Adyen, Worldpay, Barclaycard). The switch involves a new merchant agreement, fresh underwriting and a 1-3 week transition. Use our TCA calculator to confirm the saving before switching.
Above £25k monthly? Get IC+ quotes from 2-3 UK acquirers
If you are above the practical IC+ threshold, our matcher surfaces UK acquirers offering interchange-plus pricing with negotiable markups. No obligation, no upfront fees.
Open quote form →Director, AcceptCard
Oliver leads AcceptCard's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 10 May 2026