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Pricing Acquiring IC++ Blended EU

IC++ vs Blended Pricing: Which Card Processing Model is Better for EU Merchants?

FeeFox Editorial
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Merchant comparing IC++ and blended pricing documents beside a card terminal and calculator.

If you accept card payments in the European Union, you are paying under one of two pricing models: Interchange++ (IC++) or Blended. The model you are on often matters more than the headline rate — and switching can cut 20–40% off processing costs without changing anything else in your checkout.

This guide breaks down both models, the math behind them, and how to decide which one fits your business.

The three components of every card transaction

Before comparing models, you need to know what is actually being paid on every transaction:

  1. Interchange fee — paid to the card-issuing bank. Capped by the EU Interchange Fee Regulation at 0.2% for consumer debit and 0.3% for consumer credit.
  2. Scheme fee — paid to Visa or Mastercard for using the network. Roughly 0.05%–0.15%.
  3. Acquirer markup — the margin your payment provider keeps. This is the only truly negotiable part.

Your total cost is always interchange + scheme + markup. The question is how those components are quoted to you.

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

IC++ is the transparent model. Your merchant statement shows each component separately:

Interchange     0.20%
Scheme fee      0.08%
Markup          0.25%
Total           0.53%

Because each part is itemised, you see exactly what the acquirer is keeping. When interchange falls (for example, a customer pays with a low-cost domestic debit card), your cost falls too.

Advantages of IC++

  • Full transparency — you know the real cost of every transaction
  • Savings on debit-heavy volume — consumer debit is capped at 0.2%, so you capture the upside
  • Leverage for renegotiation — the markup is visibly isolated and measurable
  • PSD2-aligned — matches the spirit of European payment transparency regulation

Drawbacks of IC++

  • Less predictable — cost varies transaction-by-transaction based on card mix
  • Statement complexity — reading an IC++ statement takes practice
  • Often requires negotiation — smaller merchants sometimes need to explicitly request it

What is Blended pricing?

Blended (or flat-rate) pricing wraps all three components into a single number. A typical blended quote looks like “1.4% + €0.10 per transaction”.

Advantages of Blended

  • Simple forecasting — one rate, easy cash-flow planning
  • Default for smaller merchants — most providers quote blended unless you ask
  • Stable reporting — the rate doesn’t move transaction-by-transaction

Drawbacks of Blended

  • Hidden markup — when interchange drops, you don’t benefit; the provider keeps the spread
  • Typically more expensive — for most EU merchants, 15–35% more than an equivalent IC++ setup
  • Discourages optimisation — the opaqueness blocks you from seeing where the cost actually sits

IC++ vs Blended: The math

Assume a monthly volume of €100,000 with a typical EU e-commerce card mix (roughly 70% consumer debit, 20% consumer credit, 10% commercial/non-EU).

Blended quote: 1.4%

€100,000 × 1.4% = €1,400/month

Equivalent IC++:

  • Interchange blended across the mix ≈ 0.28%
  • Scheme fees ≈ 0.10%
  • Markup ≈ 0.30%
  • Total ≈ 0.68% → €680/month

That is €8,640 per year saved on identical volume. For merchants processing €500,000/month or more, the absolute savings grow proportionally.

When Blended actually wins

Blended can be the right call in specific cases:

  • Very low volume (under ~€5,000/month) where markup negotiation leverage is limited
  • High non-EU / commercial card share — if most of your cards carry 1%+ interchange, blended can flatten the volatility
  • Merchants who value predictability over absolute cost (budget-constrained finance teams)

For most EU e-commerce and retail merchants above €20,000/month, IC++ wins on pure cost.

How to move from Blended to IC++

  1. Request your current card-mix breakdown from your acquirer — you are entitled to this under PSD2.
  2. Model the IC++ equivalent of your current blended rate. Your acquirer, a new PSP, or an independent benchmark (like FeeFox) can do this.
  3. Request IC++ in writing. Most acquirers will provide it; some reserve it for merchants above a volume threshold.
  4. Negotiate the markup separately once the interchange and scheme components are exposed.

Common traps when switching pricing models

  • “IC++” that still includes a hidden uplift on interchange — always verify your interchange rate matches the regulatory cap for consumer cards.
  • Scheme fee pass-through markup — some acquirers add a margin on top of raw scheme fees. Ask for the invoice-level breakdown.
  • Minimum monthly fees that erase savings for smaller merchants.
  • Terminal rental and gateway fees charged on top, which can offset IC++ savings in POS-heavy setups.

The bottom line

For most EU merchants, IC++ is the more cost-efficient pricing model. Blended stays attractive only for very small merchants or those with highly irregular card mixes. If you haven’t benchmarked your rate in the last 12 months, you are likely overpaying — and the fix is often a contract renegotiation, not a provider switch.

FeeFox runs this analysis for free, in 24 hours, across your entire EU payment footprint.