Interchange-plus vs blended pricing: which is better for a small business?
Blended pricing gives you one rate for every card; interchange-plus passes through the real interchange and scheme fees and adds a disclosed margin on top. Interchange-plus is usually better for a business with decent volume and a card mix dominated by UK consumer debit, where interchange is capped at 0.2%. Blended is usually better, or at least no worse, for low volume and for anyone who values a predictable number. The answer depends on your statement, not on the model.
The three layers in every card fee
Whatever the pricing model, each card payment carries three separate costs. Interchange goes to the customer's bank. The scheme fee goes to Visa, Mastercard or Amex. The margin goes to your acquirer. The pricing model only changes whether you see them separately or as one number.
| Layer | Who gets it | Who sets it | Interchange-plus | Blended |
|---|---|---|---|---|
| Interchange | Card issuer (customer's bank) | Card schemes; capped by regulation for UK consumer cards | Shown | Hidden |
| Scheme fee | Visa, Mastercard, Amex | Card schemes; amounts vary and are published to acquirers | Shown | Hidden |
| Acquirer margin | Your provider | Negotiated with you | Shown as a fixed % | Hidden |
| Total you pay | Varies by card type each month | One rate, every card |
Interchange and the caps
Interchange is often the largest of the three, and it is regulated. The retained Interchange Fee Regulation caps it at 0.2% of the transaction value for UK consumer debit cards and 0.3% for UK consumer credit cards, where the merchant, the acquirer and the card issuer are all in the UK. The Payment Systems Regulator enforces it. Commercial cards, and cards issued outside the UK, are not capped and cost more. That distinction is the whole reason the two pricing models produce different bills.
Scheme fees
Scheme fees are the card networks' own charges, set by Visa and Mastercard and published to acquirers in their fee schedules. They are small per transaction but not nothing, and they vary by card type and transaction type. Under interchange-plus they appear as their own line; under blended they are absorbed. We do not print a figure here because it varies; your acquirer can tell you what it is passing through.
The acquirer margin
This is the only layer your provider controls and the only one you can negotiate. Under interchange-plus it is a fixed, disclosed percentage (sometimes with a pence-per-transaction fee). Under blended it is whatever is left after interchange and scheme fees come out of the headline rate, and it is different on every card you take.
A worked comparison
Take an illustrative interchange-plus deal at a 0.5% margin and compare it with a blended rate of 1.2%. Both figures are chosen for the arithmetic, not quoted from any provider; review sites report Dojo has advertised a 1.2% blended rate for smaller businesses, which is why we use it as the round number.
| Card type | Interchange | Interchange-plus (0.5% margin) | Blended (1.2%) |
|---|---|---|---|
| UK consumer debit | 0.2% (cap) | 0.2% + scheme fee + 0.5% margin = c. 0.7% + scheme fee | 1.2% |
| UK consumer credit | 0.3% (cap) | 0.3% + scheme fee + 0.5% margin = c. 0.8% + scheme fee | 1.2% |
| Commercial or non-UK card | Not capped; varies | Actual interchange + scheme fee + 0.5% margin | 1.2% or a surcharge, per the contract |
Illustrative margin and blended rate. Interchange caps from the retained Interchange Fee Regulation, checked August 2026. Scheme fees omitted as they vary.
On a UK consumer debit card, which is most of what a shop, cafe or salon sees, interchange-plus comes out around 0.7% plus scheme fee against 1.2% blended. On £10,000 of debit card sales that is a difference in the region of £40 to £50 a month before scheme fees. On commercial and non-UK cards the gap closes or reverses, because the uncapped interchange passes straight through to you. The blended rate does not care what card it is; interchange-plus does.
When interchange-plus wins
Your card mix is mostly UK consumer debit: the capped 0.2% interchange does the work
Your volume is high enough that the acquirer offers a low margin, and the saving per transaction adds up
You want to see what you are paying for, and to check it against the caps on your statement
You are happy with a bill that moves month to month as the card mix changes
When blended is the better fit
At low volume, the margin an acquirer will offer on interchange-plus is not low, and a published flat rate with no monthly fee is simpler and often no dearer. SumUp at 1.69%, Square at 1.75% and Zettle at 1.75% are all blended, and for a few hundred pounds a month they are the right answer. A blended rate also suits businesses that take a lot of commercial, corporate or international cards, where the pass-through under interchange-plus is unpredictable, and anyone who simply wants to forecast their fees as a fixed share of sales. Our card machine fees explained page covers the fee types in more depth.
Dojo pricing is quoted individually for each business rather than published as one model. For higher card volumes a quote is often the lower option, and the only way to know is to compare a quote against your current statement. Our fee comparison calculator does that arithmetic with your own card mix.
How to ask for it
You do not need to know the jargon; you need to ask for the right document. Ask any provider for the full fees schedule with interchange, scheme fees and the acquirer margin shown separately, and for the margin as a fixed percentage plus any pence-per-transaction charge. Ask how commercial and non-UK cards are priced. Ask whether the rate is fixed for the term or can be changed on notice. Then put the schedule next to a recent statement and work out the effective rate under each model, which our merchant statement guide shows how to do. A provider that will not break out its pricing usually has a wider margin built in.
Want a quote you can compare line by line?
Send us a recent statement. We introduce you to Dojo for an individual quote and show you the effective rate of each against your own card mix.
Compare my feesCapExpand is an authorised Dojo partner and is paid by Dojo when a business signs up through us. That does not change the price you pay.
Frequently asked questions
What is interchange-plus pricing?
A pricing model where you pay the actual interchange fee on each transaction (set by the card schemes and capped by regulation for UK consumer cards), plus the scheme fee, plus a fixed acquirer margin that is disclosed separately. The margin is the only part the acquirer controls, so it is the only part you negotiate.
What is blended pricing?
A single percentage rate, sometimes with a pence-per-transaction fee, that bundles interchange, scheme fees and the acquirer margin together. SumUp at 1.69% and Square and Zettle at 1.75% are blended rates. You cannot see the margin, but the number is simple and the same every month.
What are the UK interchange caps?
Under the retained Interchange Fee Regulation, interchange is capped at 0.2% of the transaction value for UK consumer debit cards and 0.3% for UK consumer credit cards, where the merchant, acquirer and card issuer are all in the UK. Commercial cards and cards issued outside the UK are not capped.
Is interchange-plus always cheaper?
No. It is cheaper when your card mix is mostly UK consumer debit and your volume is high enough that the acquirer offers a low margin. For a low-volume business, or one taking a lot of commercial and international cards, a blended rate can work out the same or lower, and it is far easier to forecast.
How do I ask a provider for interchange-plus?
Ask for the fees schedule to show interchange, scheme fees and the acquirer margin as separate lines, and for the margin as a fixed percentage plus any pence-per-transaction fee. If the provider only offers blended pricing, ask what the blended rate assumes about your card mix and whether commercial or international cards are charged differently.
The margin and blended rate in the worked example are illustrative. Interchange caps and published PAYG rates were checked in August 2026.
Sources (checked August 2026)
- Interchange Fee Regulation, Article 3: 0.2% cap on UK consumer debit
- Interchange Fee Regulation, Article 4: 0.3% cap on UK consumer credit
- Payment Systems Regulator: the IFR and its scope
- SumUp: 1.69% blended PAYG rate
- Square UK pricing: 1.75% blended in-person rate
- Zettle UK pricing: 1.75% blended rate
- Seamless POS: Dojo advertised 1.2% blended rate (review site)
CapExpand Ltd (Company No. 14433858) is an authorised Dojo partner, not a card machine manufacturer. We are not currently authorised or regulated by the Financial Conduct Authority. Card machine pricing and availability are subject to change. All information on this page is for general guidance only.