About Interchange Plus

Interchange Plus is a pricing option available for merchant customers with eligible credit accepting facilities. It allows interchange fee changes made by the card scheme providers: Visa, Mastercard and/or UnionPay to be automatically passed on to merchant customers.

In November 2022, the Retail Payment Systems Act, will take effect and require domestic card interchange fees to be reduced by some scheme providers (e.g. Visa, Mastercard). The Interchange Plus pricing option ensures these cost reductions are automatically applied to the monthly Merchant Service Fee (MSF) allowing customers to receive any reduced fee from the moment the changes take effect.

Components of the Merchant Service Fee – Interchange Plus pricing

With Interchange Plus, your MSF is made up of two parts:


Interchange fee

The actual interchange fee associated with the type of card presented. These are costs applied by the card scheme provider (e.g. Visa or Mastercard).


Margin

The total margin to cover the four other cost components related to processing transactions. These are the scheme fee, network transaction fee, float costs and ANZ acquirer margin.


Diagram showing the breakdown of Interchange Plus, described on the page

Based on your business’s individual needs, Interchange Plus is also able to be split by scheme and card type for each transaction (for both pricing and statements). This gives a much greater level of detail, transparency and may benefit your business by providing additional insights.

Features

  • The interchange component of your MSF fluctuates each month depending on the type of cards used and how transactions are processed. Certain cards and transaction method will cost more or less than others, as determined by the card scheme facilitating the transaction.
  • Provides an accurate insight of the actual cost of processing card transactions each month.
  • Any change to the interchange costs made by Visa, Mastercard and UnionPay are automatically passed on to you each month.