Which pricing model protects the operator's margin best?

Interchange plus passes the actual interchange and scheme fees to the merchant, with the operator's markup on top, so the margin does not depend on the card mix. Under blended pricing, the operator carries the risk when expensive cards dominate. Many operators combine both: blended for small merchants, interchange plus for larger ones.

Interchange plus

The merchant pays the actual interchange and scheme fees for each transaction, plus the operator's markup. If a merchant's customers use expensive cards, commercial or foreign, the merchant pays more; the operator's margin is the markup, fixed per transaction. The model is transparent and protects the margin from the card mix.

Blended pricing

• One rate for every card, simple for the merchant to read and compare.
• The operator earns more on cheap cards and less, or nothing, on expensive ones.
• The margin depends on the merchant's card mix, which the operator does not control.

How operators combine them

Blended rates for small merchants who want simplicity and whose card mix is predictable, with the rate set to cover the expected mix plus margin. Interchange plus for larger merchants that negotiate and can read a detailed statement. Some operators add a hybrid: blended tiers by card category, such as domestic debit, domestic credit and international. Whatever the model, the operator needs itemized fees per transaction to know its real margin per merchant, and to reprice when the mix drifts.