Now you can choose which type of transaction fees is best for your business: Blended rates or Interchange++.

Blended model

What is it

The blended model consists of a fixed average rate for European, non-European and virtual credit cards. The fees are calculated the same way with Interchange++, but you get a fixed fee.

This way, you always know exactly what you're going to pay in commission for a transaction, even if in some situations a variable fee would be more advantageous (e.g. domestic European cards).

Why choose this modality

This is the model best suited to properties that work a lot with virtual credit cards and non-European cards, as it guarantees a generally lower rate than the Interchange++ model.

Interchange++ model

What is it

The Interchange++ model consists of a variable fee composed into 3 types of fee: interchange, acquiring and scheme fees. 

Each of these fees can vary depending on numerous factors, including the brand of the card (Visa, MasterCard, etc.), whether the card is domestic, corporate or European, among many others.

Interchange fee (Interchange) - charged by the cardholder’s bank

Due for every card transaction, this exchange fee is paid by the merchant bank (acquirer) to the customer’s bank (issuing bank). This is why it is also called the “issuing fee”.

Scheme fee (+) - charged by the card scheme for using its network

Card organisations (such as Visa or Mastercard) charge a fee for handling and processing each transaction; this fee may vary depending on the location, security of the transaction or card type. Card schemes determine interbank commissions and are not negotiable. They are also subject to regular adjustments. For instance, Visa and Mastercard publish new rates in April and October each year.

Acquiring fee (+) - charged by the acquirer for acquiring the funds from your shopper

A fee is charged for the provision of a card service; this fee already covers the costs of service processing.

Virtual credit cards

Unlike blended rates, VCC is not automatically more expensive just because it is a VCC. That is, the logic for calculating the fees is the same as described above. But it is important to note that this type of cards usually come from OTAs and are therefore corporate cards, so the fee won't be as low as with domestic cards.

Why choose this model

This model is best for properties that work mostly with European domestic cards. Even if you have some non-European cards or VCCs with higher rates, it's more advantageous in the long run.

GOOD TO KNOW

By default, blended is the model in place when you activate RaccoonPay (except for USA and Switzerland). If you choose Interchange++, you must contact our support team to make the change.

If you want to know more about the fee models, contact our Customer Support team.