FAQs: Interchange Plus Pricing

Interchange Plus (IC++) FAQs

  • What is Interchange Plus (IC++) pricing?

    Interchange Plus pricing passes on the hard costs an acquirer must cover to acquire any transaction, so that you the merchant can see these transparently, and charges you a fixed fee for processing the transaction on top of these hard costs. This allows merchants to feel confident in the fees that they are paying, the margin the acquirer is charging and to price merchants as a reflection of their requirements.  

    There are hard costs involved when processing a card payment and settling it into a merchant’s bank account. The real cost is determined by all the different parties involved who handle the transaction. Interchange Plus pricing is a pricing model that transparently  breakstransparently breaks down the costs of card processing into three parts: interchange fee, a card scheme fee, and processing fee. The interchange fee and card scheme fee are hard costs every transaction incurs regardless of the processor, and the processing fee is the fee the acquirer charges you to process the transaction.  

     

    (IC)(+)(+) or broken down: (IC = Interchange) ,(+ = Scheme Fees) and (+ = Acquirer’s Fee) 

     

    As an example, a merchant account provider may provide you with a pricing structure which is IC++ 0.4%. This means, they will pass on the hard costs for the interchange (the IC) and the Scheme (first ‘+’), and charge you 0.4% on the transaction volume (the second ‘+’). In most cases, a separate per transaction fee is also applied.  

    Visit https://help.trustmytravel.com/getting-started/your-pricing/ for more information

  • What is Trust My Travel's IC++(P) pricing?

    Whilst we realise our solution is slightly different to a traditional processor, we also see the benefit in also using this pricing structure to align with the expectations of our providers. We know that our providers indirectly receive the benefits of our ability to process payments from customers through our financial protection offering, so we think it makes sense to align our pricing with IC++. That is why we introduced IC++(P) Pricing to our providers who process over GBP 3 Million a year in sales through us. We will transparently display the three original components of IC++ and additionally add a Protection fee on top.  

    This means, we will pass on the hard costs to acquiring the transaction, and charge an agreed rate for the Processing Fees (Second ‘+’) and our Protection Fees (‘P’). 

    IC++(P) In Detail

    1.Interchange Fee (IC):  

    What is it? Cost that the card issuer (card holder’s bank) charges the acquirer to process the transaction. 

    How is it priced? On average between 0.2% to 2% on each transaction, variable depending on many different factors e.g where the transaction was taken, type of card used, country of card issue etc. 

    How do we charge it? This is a hard cost we pass on that will be invoiced on a monthly basis. 

    Examples? Card Issuer – HSBC, Natwest or AMEX etc.  

     

    2.Card Scheme Fee (First ‘+’):  

    What is it? Cost that the card scheme (Visa, Mastercard, etc.) charges the acquirer to process the transaction. 

    How is it priced? On average between 0.02% to 0.65% on each transaction or 0.5 – 1.5% where a cross border transaction is involved, but it is variable depending on the location of the cardholder v merchant, security of the transaction or card type. 

    How do we charge it? This is a hard cost we pass on that will be invoiced on a monthly basis. 

    Examples? Card Schemes: Visa, Mastercard, AMEX, Diners, JCB ete.c 

     

    3.Acquirer Fee (Second ‘+’): 

    What is it? Cost that the acquirer itself charges for processing the card. 

    How is it priced? This will be shared in your proposal at the stage of pricing, this will include the protection fee. 

    How do we charge it? This is a fixed fee invoiced in line with your pricing proposal. 

     

    4.Protection Fee (P) 

    What is it? Included financial protection, protecting the consumer for the value of any validated payment made to any approved Trust Protects Provider in the event of their failure – details of the protection can be found – https://trustprotects.me/the-protection/  

    How is it priced? This will be shared in your proposal at the stage of pricing, this will include the acquirer fee. 

    How do we charge it? This is a fixed fee invoiced in line with your pricing proposal. 

     

    Visit https://help.trustmytravel.com/getting-started/your-pricing/ for more information