Determining your Interchange ++ pricing
Like Blend rates, Interchange ++ pricing is influenced by many factors. One key influence is sales channels. Let’s look at how online vs offline channels can make a difference.
Calculating your payment costs to determine your sell rate
Adyen’s pricing is always based on Interchange++ pricing (using a passthrough model). This means that your cost or buy rate (from Adyen) will fluctuate depending on factors like the card type and region.
Setting your IC++ pricing
It’s important to analyse the following when coming up with your Interchange++ pricing:
Estimating costs: Take a look at your reporting and calculate average costs against current and projected volumes.
For online vs offline transactions: e.g ECOM vs In-person payment transactions.
Credit vs debit vs corporate card split: Estimate the costs based on volume of transactions in consumer credit card vs. consumer debit vs corporate cards.
Because debit cards provide access to consumer-held funds vetted in the authorization process, they are considered to present less risk than credit cards.Â
Additionally, credit card transactions can be disputed by the consumer for a period up to 120 days, whereas debit card transactions must be disputed within 60 days. Counterintuitively, from a pricing standpoint, merchants are permitted to charge a surcharge to customers using credit cards, but are not permitted to do so with debit cards.
Merchant Category Code and pricing
How your users are categorised under Visa and MC Merchant Codes as MCC influences the price (as the risk profile changes between MCC).Â
Based on the above, you can calculate what your markup should be if you choose to offer the Interchange++ model.
Calculate your Interchange costs with Adyen
Here’s an Adyen tool to give you an idea of how you can calculate your Interchange++ costs. For now, this is specific to the UK.