The board · note 04
The markup, the part you can argue
Blended, IC+ or IC++: same money, different amounts of it you are allowed to see.
Card acceptance · UK · checked 16 Sep 2026
The short answer
Blended, IC+ and IC++ are the same price with different amounts of it visible
Blended pricing gives you one rate for every card. Interchange plus (IC+) shows interchange on its
own line and bundles the rest. Interchange plus plus (IC++) splits interchange, scheme fees and your
provider’s margin. Only IC++ lets you see, in the month it happens, which part of your bill
went up.
The lesson
Why the name of the pricing model matters
- Under blended pricing a rise in scheme fees and a rise in your provider’s margin look
identical on the statement.
- The regulator’s own remedies work in these three categories, which tells you they are
the real dividing lines in the market.
- Providers must give merchants information on the cost of accepting different brands and
categories of card. That rule has been in force since 9 June 2016.
Task before opening time. Ask your provider, in writing, for an IC++ breakdown of last
month. The answer, or the silence, tells you which contract you are in.
The reference table
Three ways the same deal is quoted
| Model | What the statement shows | What moves without warning | Suits |
|---|
| Blended | one percentage for everything | everything inside it | nobody who wants to compare |
| Interchange plus, IC+ | interchange, then the rest | scheme fees, hidden in the rest | most small shops |
| Interchange plus plus, IC++ | interchange, scheme fees and margin, split | only interchange and scheme fees | anyone renewing a contract |
The arithmetic
One scheme fee rise, seen through two contracts
Example figures. A shop takes £10,000 a month. On IC++ its bill is £22 of interchange, £18 of
scheme fees and £90 of margin: £130, the same as a blended 1.3%.
Next year scheme fees rise by a quarter. On IC++ the scheme line becomes £22.50: the bill grows
by £4.50 and the margin stays at £90. On blended pricing the provider moves the rate to 1.4%,
citing scheme costs, and the bill grows by £10. Of that £10, £4.50 was the scheme. The other £5.50
was margin, and nothing on the statement says so.
Our worked example, not a quote from any provider
The guide
How to argue the markup in five steps
- Get last month’s charges broken down by interchange, scheme fees and everything else.
- Subtract the first two from the total. What is left is the markup plus fixed charges.
- Divide that by card turnover. This is the only percentage worth comparing between quotes.
- List every fixed monthly charge separately: rental, minimum, PCI, statement fees.
- Put the rival quote through the same four steps before you mention it on the phone.
Illustrative case
The butcher who asked for the breakdown
A butcher in Norwich had been on a blended 1.39% for four years and assumed it was the market
rate. He asked for an IC++ breakdown before renewing. Interchange and scheme fees came to 0.41%
of turnover; the rest, 0.98%, was margin.
With that number in hand he did not need a rival quote to make the call. The butcher is
invented. The order of the conversation, breakdown first and haggling second, is the one that works.
Questions we get
Four questions about the markup
- What is the difference between blended and interchange plus pricing?
- Blended gives one rate for everything. Interchange plus shows interchange separately and puts the rest in one figure. Interchange plus plus separates interchange, scheme fees and the margin.
- Which pricing is cheaper, blended or IC++?
- Neither is cheaper by design. IC++ is easier to check, which is usually what makes it cheaper over the life of a contract.
- Can a small shop get IC++ pricing?
- Some providers offer it, and whether yours does is a question worth asking in writing. The answer costs nothing and tells you what kind of contract you are in.
- How do I work out my provider’s markup?
- Take the total charges for a month, subtract interchange and scheme fees, and divide what is left by card turnover. On blended pricing you need an IC++ breakdown to do it.