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Reading time: approx. 7 minutes | Last reviewed: May 2026

How FeeCheck Calculates Payment Costs — Step-by-Step Explained

Card payment costs consist of three components: the interchange fee (regulated by EU Regulation 2015/751), the scheme fee (card network), and the acquiring margin (payment service provider). FeeCheck makes this structure transparent for every merchant.

The Three Components of Every Card Payment

When a customer pays by card in a European shop or webshop, the merchant does not receive 100% of the transaction value. A portion is deducted to cover the costs of the payment infrastructure. This deduction — known as the Merchant Service Charge (MSC) or disagio — consists of exactly three elements.

Understanding these three elements is essential for comparing payment providers fairly.

Component 1: Interchange Fee

Definition: The interchange fee is the amount paid by the acquiring bank (the merchant's bank) to the issuing bank (the customer's bank) for each card transaction. It compensates the issuing bank for the risk and funding costs of the payment.

EU Regulation: The Interchange Fee Regulation (EU 2015/751 — IFR), in force since June 2015, caps interchange fees for consumer card payments within the EEA:

Card Type	IFR Cap	Notes
EEA Consumer Debit Card	0.20% of transaction	Applies to Visa Debit, Mastercard Debit, national schemes co-badged with Visa/MC
EEA Consumer Credit Card	0.30% of transaction	Applies to Visa Credit, Mastercard Credit
Girocard (DE domestic)	~0.20% flat + small fixed fee	National scheme; IFR co-badging rules apply
Carte Bancaire (FR domestic)	Domestic rates; generally low	CB network; specific bilateral agreements
Commercial / Business Cards	Not capped	Typically 0.8–1.9%
Three-party networks (AmEx direct)	Exempt from IFR	Typically 1.5–3.0%
Non-EEA Cards (US Visa, UK MC post-Brexit)	Not capped	Typically 1.5–2.5%

Key takeaway: The IFR caps protect merchants from high interchange on everyday consumer cards issued within the EEA. However, these caps do not cover commercial cards, non-EEA cards, or three-party schemes — which explains why tourist-heavy businesses face higher costs.

Component 2: Scheme Fee

Definition: Scheme fees (also called assessment fees or network fees) are charged by the card network — Visa, Mastercard, American Express, or national networks — for use of their infrastructure, brand, and interoperability services.

Key facts:

Scheme fees are not regulated by the EU
They are not fully publicly disclosed by card networks
Typical range: 0.02% to 0.15% of transaction value
Fees vary by transaction type (contactless, e-commerce, cross-border), card type, and volume tier

FeeCheck uses verified market ranges for scheme fees. These are clearly marked as approximate figures where precise data is not publicly available.

Component 3: Acquiring Margin

Definition: The acquiring margin is the revenue retained by the payment service provider (PSP), acquirer, or card machine company for processing the transaction and managing the merchant relationship.

Key facts:

The acquiring margin is set by commercial negotiation — it is not regulated
It varies significantly by business size, transaction volume, industry, and provider
Typical range for SMEs: 0.05% to 0.8% (or a fixed amount per transaction)
Large-volume merchants often negotiate substantially lower margins

This is the component where merchants have the most room to negotiate. FeeCheck's comparison tool focuses heavily on this component to help merchants identify the most cost-competitive offers for their transaction profile.

Worked Example: Standard Retail Transaction

> Scenario: German supermarket | Customer pays with EEA Visa Debit card | Transaction value: EUR 50.00

───────────────────────────────────────────────────────
 Component              Calculation          Amount
───────────────────────────────────────────────────────
 Transaction Value                          EUR 50.00
───────────────────────────────────────────────────────
 1. Interchange Fee     0.20% of EUR 50     EUR  0.10
    (IFR cap, EEA consumer debit)
 2. Scheme Fee          ~0.06% of EUR 50    EUR  0.03
    (approximate — Visa assessment)          (indicative)
 3. Acquiring Margin    0.24% of EUR 50     EUR  0.12
    (example: competitive SME tariff)
───────────────────────────────────────────────────────
 TOTAL COST             = 0.50% of EUR 50   EUR  0.25
───────────────────────────────────────────────────────
 Merchant receives:                         EUR 49.75
───────────────────────────────────────────────────────
 Note: All figures are illustrative examples.
 Actual costs depend on specific provider tariff and card type.

Worked Example: Tourist Transaction with Non-EEA Card

> Scenario: Spanish restaurant | US tourist pays with US-issued Visa credit card | Transaction value: EUR 80.00

───────────────────────────────────────────────────────
 Component              Calculation          Amount
───────────────────────────────────────────────────────
 Transaction Value                          EUR 80.00
───────────────────────────────────────────────────────
 1. Interchange Fee     ~1.80% of EUR 80    EUR  1.44
    (non-EEA card — IFR does NOT apply)
 2. Scheme Fee          ~0.10% of EUR 80    EUR  0.08
    (approximate)
 3. Acquiring Margin    0.30% of EUR 80     EUR  0.24
───────────────────────────────────────────────────────
 TOTAL COST             = ~2.20% of EUR 80  EUR  1.76
───────────────────────────────────────────────────────
 Merchant receives:                         EUR 78.24
───────────────────────────────────────────────────────
 Note: All figures are illustrative examples.

This comparison illustrates why businesses with high tourist footfall (beach restaurants, city-centre retailers, tourist attractions) face disproportionately higher payment costs than businesses serving primarily domestic customers.

Pricing Models: Blended, Interchange++, and Flat Fee

Payment providers offer different pricing structures that fundamentally change how the three components are presented to merchants:

Blended Rate

All three components (interchange + scheme + acquiring) are combined into a single percentage rate. Example: "1.5% per transaction, all cards."

Advantage: Simple; predictable costs
Disadvantage: No transparency on actual interchange costs; high-volume merchants often overpay; good card mix (mainly EEA debit) subsidises bad card mix (many commercial or non-EEA cards)

Interchange++ (IC++)

The actual interchange fee and scheme fee are passed through at cost. The provider adds only their margin on top. The merchant sees an itemised bill.

Advantage: Full transparency; merchants benefit from good card mix (mostly regulated EEA consumer debit); lower effective cost for most high-volume EU merchants
Disadvantage: More complex billing; monthly costs vary with card mix

Flat Fee per Transaction

A fixed amount per transaction regardless of value. Example: EUR 0.15 per transaction.

Advantage: Predictable; ideal for very low average transaction values
Disadvantage: Economically unfavourable for high-value transactions; interchange still flows underneath

FeeCheck recommendation principle: FeeCheck does not recommend specific models — it helps merchants calculate their likely effective cost under each model given their specific transaction profile.

Why the Same Card Can Cost More in France Than in Germany

National payment ecosystems vary across the EU. Several factors cause cost differences between countries:

Domestic card networks: Girocard (DE), Carte Bancaire (FR), Bancomat (IT) have specific interchange structures that may differ from international Visa/Mastercard rates.
Co-badging rules: A card carrying both Girocard and Visa branding is routed through the cheapest network in many German terminals — this lowers the merchant's cost.
Acquirer market competition: Markets with more competitive acquiring (like Germany) tend to have lower acquiring margins than less competitive markets.
PSP coverage: Not all payment providers operate in all EEA markets; local providers may have different cost structures.

Non-EEA Cards: Why They Cost More

EU Regulation 2015/751 (IFR) applies only to transactions where both the issuing bank and the acquiring bank are located within the EEA. If the card was issued outside the EEA, the IFR caps do not apply.

Card Origin	IFR Applies?	Typical Interchange
EEA-issued consumer debit	✅ Yes	0.20% (max)
EEA-issued consumer credit	✅ Yes	0.30% (max)
UK-issued (post-Brexit)	❌ No	1.15–1.5% (typical)
US-issued	❌ No	1.5–2.5% (typical)
Commercial/business (any country)	❌ No	0.8–1.9% (typical)
American Express (three-party)	❌ Exempt	1.5–3.0% (typical)

Frequently Asked Questions (FAQ)

What is an interchange fee in simple terms? An interchange fee is a charge paid between banks every time a card payment is processed. It flows from the merchant's bank (acquirer) to the card-issuing bank (issuer). In the EU, these fees are capped by law for consumer cards: 0.20% for debit, 0.30% for credit cards.

Why do some cards cost more to accept than others? Card costs differ based on: (1) card type — consumer vs. commercial, (2) issuing country — EEA cards have regulated caps, non-EEA do not, (3) card network — American Express operates outside the IFR framework, (4) transaction type — contactless, chip, online.

What is the difference between interchange++ and blended pricing? Interchange++ (IC++) pricing passes the actual interchange and scheme fee through to the merchant transparently, adding only the acquirer's margin on top. Blended pricing combines all three into a single flat rate. IC++ is more transparent and often cheaper for high-volume merchants with a good card mix.

Are American Express cards more expensive than Visa or Mastercard? Yes, generally. American Express operates as a three-party network and is exempt from IFR interchange caps. Effective merchant costs for Amex transactions are typically 1.5–3.0%, compared to 0.2–0.5% for regulated EEA consumer Visa/Mastercard.

What does a non-EEA card (e.g., a US tourist's card) cost a European merchant? Non-EEA cards (US Visa, US Mastercard, UK cards post-Brexit) are not subject to IFR interchange caps. Interchange fees for these cards typically range from 1.5% to 2.5% of transaction value, making them significantly more expensive for European merchants.