Payment service providers can choose the Interchange plus plus pricing model to get the costs per individual transaction to be transparent.
When processing credit card transactions, banks and payment schemes like Visa and Mastercard take fees to cover the operational costs of managing their network.
Costs are different for each transaction, based on factors like:
- the country where the card of the consumer is issued
- the country where the transaction is processed
- the type of card (businesses or consumer card)
- the way the card is accepted (security level)
- the transaction size
The payment schemes and banks also calculate different fees (within a certain bandwidth). So overall, the real costs are hard to predict beforehand.
To get the costs per individual transaction to be transparent, payment service providers can choose Interchange ++: no general price for all transactions, but the sum of the costs for the individual transactions you have processed.