Have you ever wondered why a promised “0.8% fee” turns into a total monthly cost above 1.2%?
The answer is in how card pricing is structured. In this guide, FeeFox breaks transaction pricing into its three core components so you can see what you really pay.
The pricing model
Most merchants operate on Interchange++ (or a similar model), where total cost is the sum of three separate components.
1. Interchange fee
This is paid to the card-issuing bank. Example: if your customer pays with a card issued by another bank, part of the fee goes to that issuer.
- Rule of thumb: In the EU, interchange is generally capped at 0.2% for consumer debit and 0.3% for consumer credit cards.
- Important: Corporate cards and non-EU cards can have significantly higher interchange.
2. Scheme fees
These are fees charged by Visa and Mastercard for network usage. They are usually smaller (for example 0.05% to 0.15%), but unavoidable.
3. Acquiring markup
This is the part you can usually negotiate. It is the margin your provider keeps for processing.
How markup can quietly inflate your cost
Many providers offer a blended rate (for example flat 1.2%). If your customers mostly use low-cost domestic debit cards, the provider keeps most of the spread as markup.
Example:
- Domestic debit transaction: 0.2% interchange + 0.1% scheme = 0.3% base cost.
- If you pay 1.2% flat, provider markup is 0.9%.
What to check in your statement
- Minimum fees: Fixed minimums per transaction can heavily impact low-ticket sales.
- Service fees: Monthly platform, maintenance, or reporting fees can increase effective cost.
FeeFox recommendation
Do not evaluate only the commercial headline rate. Ask for an Interchange++ breakdown if your volume justifies it. That is the only way to get true transparency.
Need help decoding your numbers? FeeFox can run the analysis for free and show exactly where margin is leaking. Take the first step here.