Instead, many prefer a blended pricing structure that hides the true cost described in the interchange++ model, but gives much more predicable fees to cover most transactions. Blended pricing applies to almost any price structure that’s not interchange plus plus: it ‘blends’ the interchange, scheme and/or acquirer fees into one or several charges that are easier to understand than interchange plus plus’s model of treating each transaction differently.
For example, one of the simplest blended rates available is SumUp’s 1.69% per transaction. SumUp sells card readers with no monthly fees – you just pay one predictable rate for all transactions. This covers interchange, scheme fees, acquirer fee, chargebacks (that are usually charged for individually with interchange++) customer service and other ongoing services.
A more complicated blended structure is the ‘Pay as You Go’ plan by Worldpay, which charges a fixed percentage (like 1.75%) for consumer Visa and Mastercard transactions, higher rate (2%+) for all other cards, and a “Transaction Authorisation” fee. Other providers may have a tiered pricing structure where transaction fees go down when transaction volume goes up.
With blended pricing, the acquirer or merchant service provider takes the hit if you accept a transaction that would be expensive on an interchange++ plan, but cheaper with a blended rate. Conversely, the merchant will likely pay more for domestic Visa Debit card payments with a blended rate than they would with interchange++.