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 →Founder & Managing Director, Muswell Rose, MerchantHQ
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind MerchantHQ. His career runs through insurance, mortgages, commercial finance and fintech lending, including payments and merchant services. He writes the MerchantHQ library.
Last reviewed: 10 May 2026