Short answer
Different cards cost different amounts because interchange, the largest fee, depends on the card type. Consumer debit and credit cards are capped in many markets, while commercial, corporate and international cards usually are not, so they can cost several times as much. Your card mix is therefore a major driver of your effective rate.
Part of Fees and pricing models. Start with the main guide: Interchange plus vs blended vs flat rate: which pricing model costs less?
Key takeaways
- Interchange depends on card type: consumer debit is usually cheapest, consumer credit a little higher, commercial and international cards often much higher.
- Regulation caps consumer cards in the UK, EEA and some other markets, but commercial cards are generally outside the caps.
- Two businesses with the same turnover can pay very different amounts because their card mix differs.
- Flat and blended pricing average these differences out, while interchange plus passes them through.
- Ask your provider for a statement split by card type, because a single total hides the effect.
A customer taps a card and a payment goes through. To the customer it makes no difference whether the card is a debit card from a high-street bank, a rewards credit card or a company card issued by their employer. To the business accepting it, the difference can be large. Each type of card carries its own interchange rate, and so a shop's bill depends on which cards its customers happen to use.
This guide explains why the cards differ, how regulation affects some of them, what a realistic mix looks like and how the mix moves your effective rate. It also shows why the card-type breakdown on a statement is worth asking for.
Why do cards cost different amounts to accept?
Interchange pays the customer's bank for several things: the cost of funds, the risk of fraud and, on some cards, the reward programme that makes the card attractive to the customer. Cards differ on each.
- Debit cards draw directly from the customer's account. There is no lending and generally less credit risk, so interchange is lower.
- Credit cards involve lending, a settlement delay for the cardholder and often a rewards scheme, so interchange is higher.
- Commercial and corporate cards come with expense reporting, higher limits and richer rewards. They are priced higher and are often outside the caps applied to consumer cards.
- Premium and rewards cards pay for their perks partly through higher interchange, so they cost the merchant more.
- International cards involve more parties and a higher fraud risk, and carry extra network fees.
Where are consumer cards capped?
Regulators in several places have limited the interchange on consumer cards. The rules differ, and they change, so treat the following as a snapshot and check the latest.
| Market | Consumer debit | Consumer credit | Commercial cards |
|---|---|---|---|
| UK and EEA (domestic) | Capped at 0.2% | Capped at 0.3% | Not covered by the same cap |
| United States | Capped for large issuers (21 cents plus 0.05%); small issuers exempt | Not capped by the same rule | Not capped |
| Australia | Caps being reduced from 1 October 2026 | Caps being reduced from 1 October 2026 | Commercial credit stays at a higher level |
| New Zealand | Personal card caps in force | Personal card caps in force | New commercial credit caps from 22 April 2027 |
The pattern is the same everywhere. Consumer cards are regulated. Commercial cards, which the regulators saw as business-to-business products, have been left alone until recently. New Zealand's October 2026 decision to cap commercial credit cards is a notable change. Our guides cover each market: see UK interchange caps, Australia's 2026 changes and New Zealand merchant fees.
What does a payment cost on each card type?
To see the effect, take a £100.00 payment. Using the UK consumer caps for debit and credit, and an example assumption of 1.00% for a commercial card (not a published rate), the interchange alone differs by a factor of five:
Consumer rates are the UK and EEA caps. The commercial figure is an example assumption, because commercial rates vary by scheme and are not capped in the same way.
The pence matter because they repeat on every payment. A business taking 1,000 payments a month of £100.00 pays £200 in interchange if all are consumer debit, £300 if all are consumer credit and £1,000 if all are commercial cards at the example rate.
How does your card mix move your effective rate?
Take two businesses, each with £20,000 of monthly card turnover. The first sells to local consumers, who mostly pay by debit. The second sells supplies to other businesses, and a large share pays by company card.
| Business 1: consumer shop | Business 2: trade supplier | |
|---|---|---|
| Consumer debit | £16,000 | £6,000 |
| Consumer credit | £3,000 | £4,000 |
| Commercial cards | £500 | £9,000 |
| International | £500 | £1,000 |
| Interchange (example rates) | £32.00 + £9.00 + £5.00 + £8.00 = £54.00 | £12.00 + £12.00 + £90.00 + £16.00 = £130.00 |
| Interchange as % of turnover | 0.27% | 0.65% |
The example rates are 0.20% for consumer debit, 0.30% for consumer credit, 1.00% for commercial and 1.60% for international. The second business pays more than twice as much in interchange on the same turnover, purely because of who pays it and how.
- Consumer debit
- Consumer credit
- Commercial
- International
- Consumer debit £32 · Consumer credit £9 · Commercial £5 · International £8
- Consumer debit £12 · Consumer credit £12 · Commercial £90 · International £16
£20,000 of monthly card turnover each. Example rates.
The share of cost that comes from commercial cards in the second business is 69%, although they make up 45% of its turnover. That is the power of the card mix.
Why does card mix matter for the pricing model?
The three main models treat these differences differently.
- Interchange plus passes each card's real cost through, so Business 1 pays little for its debit cards and Business 2 pays more for its commercial cards. Each is charged what its mix actually costs, plus the markup.
- Blended charges a standard rate for the common cards and a higher rate for the rest. A mostly consumer business can end up subsidising the average. A business with many commercial cards pays the higher rate on those.
- Flat rate charges the same percentage on everything. It is set high enough to cover the mix the provider expects, so businesses with cheap mixes overpay and businesses with expensive mixes may get a bargain.
See interchange plus, blended and flat rate for a full month run through all three.
The practical consequence is that the right model depends on your mix. A shop whose customers pay almost entirely with consumer debit cards usually does best on interchange plus. A business that takes a lot of commercial or international cards might find a flat rate closer to break-even.
How does surcharging work with different cards?
In some countries, merchants have been allowed to pass the cost of expensive cards on to customers by adding a surcharge. In the UK, surcharging on consumer cards has been banned since January 2018, though commercial cards are treated differently. Australia has decided to end surcharging from October 2026. The US allows it with limits that vary by state. See our guide to surcharging, cash discounts and dual pricing for how the rules differ.
How do you find your card mix?
Your statement should show turnover by card type. Look for sections labelled:
- Consumer debit, consumer credit
- Commercial, business or corporate cards
- International or non-EEA cards
- Premium or rewards cards, where shown
If your statement shows only a single total, ask your provider for a breakdown by card type. Without it, you cannot tell why your effective rate is where it is.
What can and can't you do about card costs?
You cannot choose which cards your customers use, and in most cases you cannot refuse them. In some markets, rules are changing: US merchants may gain the ability to decline certain premium cards under proposed settlement terms, subject to court approval. In most places, though, the card mix is a fact of your business.
What you can do is make sure the pricing fits it:
- Know your mix. Get the card-type breakdown.
- Compare quotes on your mix. A quote built for a consumer mix may not suit a trade mix.
- Check the non-standard rate. On blended pricing, see which cards are charged at the higher rate.
- Watch for changes. If you start selling to businesses or online, your mix will shift.
For consultants
Card mix is the first thing to ask a merchant about. It tells you which pricing model is likely to win before you have run a number. Show the merchant their mix in a chart and the logic of the recommendation becomes obvious to them. The checkmyrates calculator has a section for each card type, so you can enter the merchant's real mix and see the cost of each.
Frequently asked questions
Why do some cards cost more to accept than others?
Interchange depends on the card type. Debit cards cost least, consumer credit cards a little more, and commercial, premium and international cards cost more because of rewards, higher fraud risk and the lack of caps.
What is a commercial card?
A card issued to a business or its employees for company spending, also called a corporate or business card. They tend to carry higher interchange than consumer cards and are often outside consumer caps.
Are debit cards cheaper than credit cards?
Usually, yes. Consumer debit interchange is capped at 0.2% in the UK and EEA, against 0.3% for consumer credit. In other markets, the difference varies.
Does my card mix affect my effective rate?
Strongly. Two businesses with the same turnover can pay very different amounts because one takes mostly consumer debit cards and the other takes many commercial or international cards.
How do I find out my card mix?
Check your statement for turnover by card type. If it only shows a total, ask your provider for a breakdown for the last three months.
Can I refuse expensive cards?
In most markets, no. The rules are changing in some places, so check current rules for your country and your agreement with your provider.
Sources and further reading
- UK interchange fees explained (MerchantHQ) (opens in a new tab)
- RBA conclusions on merchant card payment costs and surcharging (opens in a new tab)
- Regulation of debit interchange fees (Congressional Research Service) (opens in a new tab)
- Federal Reserve, Regulation II (Debit Card Interchange Fees) (opens in a new tab)
- EU Regulation 2015/751 on interchange fees (EUR-Lex) (opens in a new tab)
- Reserve Bank of Australia, payments and infrastructure (opens in a new tab)
Figures in this guide are examples to show the method. Fees, rules and rates change, so check your own statement, contract and current rules before you decide. This is general information, not financial or legal advice.