Explaining the different pricing models: Blend vs Interchange

Explaining the different pricing models: Blend vs Interchange

The two most commonly adopted pricing models for embedded payments are:

• Blend

• Interchange++

Blend (also referred to as Flat Rate) is the easiest pricing model. Your platform users pay a fixed fee regardless of the card type or payment method. 

Interchange++ is a transparent pricing model. You pay the exact interchange fee determined by the card network based on the payment type, plus a fixed processing fee from your payment processor. This means the fee will fluctuate, making it harder to reconcile.

The main difference between these two pricing models is the predictability of costs. The table below shows the pros for you as a platform and the benefits for your customers per pricing model.

When it comes to pricing your embedded payments solution, selecting the right rate structure is critical. 

The decision between Blend and Interchange++ can shape your customers' experience and your bottom line. 

Keeping it simple Blend Rates have transformed payment pricing by replacing the complexity of Interchange Plus (IC+). With IC+, merchants faced a tangled web of over 300 interchange categories, often presented in lengthy monthly statements. 

For SMBs, Blend Rates have simplified this. They offer predictability, transparency, and simplicity that drive adoption and build trust. Platforms combining software with embedded payments use Blend Rates to streamline their GTM process and unlock new margin opportunities.

Typically we see that platforms offer a Blend Rate when their users are SMBs, Sole Props and/or individuals and only offer IC++ for the bigger and more sophisticated enterprise users that demand more transparency.

Examples of Blend Rate structures

Blend Rates are highly flexible and can be tailored to suit your platforms’ strategy. Here are common examples: