Interchange++ Pricing: How the Fee Structure Reveals Your Merchant Account Type

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Why does your commission indicate that you are using a high-risk processor?

Introduction: The Account That Gives It All​

You've set everything up perfectly:
— Residential proxy from Miami,
— Address set to ZIP code 33101,
— Eastern Time time zone.

But the first time you request a refund, you're immediately blocked. Why?

Because your commission structure — Interchange++ Pricing— reveals your merchant account type.

Fraud engines and banks analyze not only transactions but also the processor's pricing model. If you're using a high-risk processor, this is evident from three digits in the report.

In this article, we'll explore how Interchange++ works, why it issues high-risk accounts, and how to choose the right pricing model.

Part 1: What is Interchange++ Pricing?​

Technical definition​

Interchange++ is a transparent pricing model where the commission consists of three parts:

1. Interchange Fee — network fee (Visa/Mastercard) for a transaction,
2. Scheme Fee — payment system (Visa/MC) fee for processing,
3. Markup — processor markup (usually 0.10–0.30%).

Example:
Transaction $100:

• Interchange: $1.80 (1.80%),
• Scheme: $0.10 (0.10%),
• Markup: $0.25 (0.25%),
• Total: $2.15 (2.15%).

This model is standard for low-risk businesses (retail, SaaS).

Part 2: How Interchange++ Issues High-Risk Accounts​

Key signals​

1. Overpriced Markup

• Low-risk processors: Markup = 0.10–0.25%,
• High-risk processors: Markup = 0.50–2.00% (sometimes fixed fee $0.50+).

Example:
If your report shows Markup = 1.50%, the bank immediately understands: “This is a high-risk merchant ”.

2. Lack of Interchange Details

• Some high-risk processors hide the Interchange/Scheme, showing only the total fee (e.g. 3.5% flat).
• This is a red flag - legitimate processors always disclose details.

3. Non-standard MCC categories

• High-risk processors often use MCC 5960 (Direct Marketing) or MCC 5967 (Digital Goods),
• These categories automatically increase your fraud score.

Field data (2026):
Profiles with Markup >0.50% have a fraud score of 90+, even with a perfect IP.

Part 3: Why High-Risk Processors Use Inflated Markup​

High-risk processor business model​

1. Reserve Account—retention of 5–10% of turnover for 180 days,
2. The high markup compensates for the risk of chargebacks,
3. Hidden fees - setup fee, monthly fee, rolling reserve.

The truth:
The higher the Markup, the higher the risk for the bank.
And the bank knows this.

Part 4: How to Check Your Fee Structure​

Step 1: Get a report from the processor​

• Request Interchange++ breakdown for the last transaction,
• Make sure all three components are listed.

Step 2: Analyze the Markup​

Processor type	Markup	Risk
Low risk (Stripe, Adyen)	0.10–0.25%	Safe
Mid-risk (PayPal)	0.30–0.45%	Moderate
High-risk (Durango, PaymentCloud)	0.50–2.00%	Dangerous

Rule:
If Markup >0.45% → you have already been issued.

Part 5: How to Choose the Right Pricing Model​

For low-risk businesses (recommended)​

• Processors: Stripe, Adyen, PayPal,
• Model: Interchange++ with Markup <0.25%,
• Advantages:
  • Low fraud score,
  • Fast payouts,
  • 3D Secure 2.0 support.

For high-risk businesses (caution)​

• Processors: Durango, PaymentCloud, Telda,
• Model: Flat rate (3.5% + $0.30) or Interchange++ with high Markup,
• Risks:
  • High fraud score,
  • Freezing of funds,
  • Refusal to pay.

Tip:
If you're in the MOTO (telephone sales) business, consider registering in the UAE or Georgia — it's easier to get a low-risk merchant account there.

Part 6: Practical Recommendations​

If you are using a high-risk processor:​

1. Don't ask for refunds - they reveal the fee structure,
2. Use cryptocurrency for cashout - avoid bank transfers,
3. Limit your transaction volume to no more than $5,000/day.

If you want to switch to low-risk:​

1. Register a legal business in the UAE or Georgia,
2. Connect Stripe via EU entity,
3. Use only low-risk digital goods (subscriptions, software).

Conclusion: A commission is more than just a fee. It's an identifier.​

Interchange++ Pricing isn't just a way to calculate fees. It's the digital identity of your merchant account.

And if your identity is marked as high-risk, no proxy or anti-detection browser will save you.

Final thought:
True security lies not in hiding data, but in its veracity.
Because in the world of payments, every fee is a fingerprint.

Stay accurate. Stay legal.
And remember: in a world of fraud, even a percentage can give you away.