How does interchange++ work?

Adyen uses an Interchange++ model to calculate merchant processing fees. 
This model allows for transparency, and you can find the fee for every transaction in your deposit report.

The fee is always interchange + .21% + 5¢

How does interchange work?

Interchange fees are set by banks and card schemes. These fees are typically updated twice a year. 
While there are many resources online where you can find these published fees we've found Credit Donkey to be a reliable source.

As you can see, interchange rates vary based not only on card scheme, but by card type as well. 
For example, a Visa Rewards Signature Preferred card has an interchange rate of 2.4% + 10¢. Meanwhile a Visa Credit Basic card has an interchange rate of 1.8% + 10¢. 

The advantage of interchange++ (over blended rates) is that savings on lower interchange rates are passed on to you,
rather than being kept by a processor. You can see a visual representation of this system below.

So using our Visa Credit Basic interchange rate from before. The fee is calculated as:

Interchange + .21% + 5¢

1.8% + 10¢ + .21% + 5¢

2.01% + 15¢

How can I figure out my blended rate?

To figure out your blended rate, you can use your deposit report and divide fees by deposits (turned into a percentage).

Want to learn more?

Adyen has an in depth article about their interchange++ model as well as how interchange works.