You look at your merchant statement and see a single percentage. Another owner looks at hers and sees three separate line items on every transaction. Same card, same sale amount, completely different statement.
Neither of you is being overcharged. You are simply on different pricing models. There are two in common use, Interchange++ and blended, and the main difference between them is not what you pay for. It is how those costs are presented to you.
Qashier supports both, for small businesses and larger SMEs alike. So the question is no longer which model your provider happens to offer. It is which one is right for you, and that is a conversation worth having before you commit to either.
Understanding the fees
Every card payment carries three separate costs. Both pricing models include all three. They just package them differently.
Two of the three are outside any provider's control. Every provider operating in Singapore pays the same published interchange on the same transaction. The real difference between quotes sits in the provider's own fee, and in how openly the other two are shown to you. Our guide to what Interchange++ pricing is walks through each of the three in more detail.
Interchange fee
Charged by the customer's issuing bank, the bank that gave them the card, at a rate set by the card networks. This is usually the largest slice, and it moves depending on card type, whether the card was tapped in person or keyed online, and whether it was issued locally or overseas. A premium rewards card costs more to accept than a basic local debit card, because someone has to fund those miles.
Set by the card networks, paid to the issuing bankScheme fee
Charged by the card networks, such as Visa and Mastercard, for the use of their systems. Smaller than interchange, but it still varies by transaction type.
Set by the card networksProcessing fee
What your payment provider charges for its own services: authorisation, settlement, fraud tools, reporting, support, and the terminal or software you use at the counter every day.
Set by your providerThe two models at a glance
Interchange++ · Bank costs at cost, plus our fee
The bank and network fees are passed on to you exactly as charged. Your provider's fee for running the payment is shown separately, so you can see what each part costs. The two plus signs stand for those two pass-through costs.
- Every component itemised, transaction by transaction
- Low cost cards actually cost you less
- Monthly total moves with your card mix
- Longer statements, more to review
Blended · One averaged rate
All three components are averaged across your expected transaction mix and quoted as a single rate, sometimes with a fixed cents amount added.
- One number, no breakdown
- Easy to forecast and reconcile
- Cheap debit sales subsidise expensive credit ones
- You cannot see what your provider actually kept
The same sale, two statements
Here is one card sale of SGD 100 as it would appear under each model.
| On a SGD 100 card sale | Interchange++ | Blended |
|---|---|---|
| Interchange | 0.50 | Not shown |
| Scheme fee | 0.03 | Not shown |
| Processing | 0.60 | Not shown |
| Total fee | 1.13 | 1.15 |
| What the statement tells you | Every line visible | One line, no breakdown |
Over one sale the gap is a couple of cents. Over three thousand sales a month it becomes a number worth understanding, and the direction it moves in depends entirely on which cards your customers actually carry.
Four businesses, same revenue, different answers
Four merchants, each taking the same monthly card volume. Same revenue, very different transaction profiles, and the cheaper model flips depending on the profile.
| Business | Card profile | Interchange++ | Blended | Cheaper model |
|---|---|---|---|---|
| Bubble tea kiosk 2,500 sales, SGD 20 average |
90 per cent local contactless debit | 565 | 575 | Too close to call |
| Hair salon 500 sales, SGD 100 average |
75 per cent local debit, rest local credit | 525 | 575 | Interchange++ saves 50 |
| Furniture retailer 100 sales, SGD 500 average |
80 per cent local debit, few transactions | 445 | 575 | Interchange++ saves 130 |
| Visitor facing boutique 400 sales, SGD 125 average |
Half overseas and premium credit | 775 | 575 | Blended saves 200 |
What these figures assume
Illustrative figures only. Not a Qashier rate quote. All four assume the same monthly card volume, the same provider fee applied under each model, and a typical spread of Singapore interchange costs by card type. Real interchange varies by card, channel and issuing country. Some blended plans also carry a separate rate for non-domestic cards.
Notice what drives the result. It is not revenue, and it is not business size. It is the cards your customers carry and how many transactions that revenue is spread across. The furniture retailer wins on Interchange++ because low interchange on local debit is passed straight through and there are few transactions attracting per sale costs. The boutique loses on it for the opposite reason, because expensive overseas cards are passed through just as faithfully.
Which is why the honest answer to which model is cheaper is that nobody can tell you without looking at your data. Including us.
Side by side
| Interchange++ | Blended | |
|---|---|---|
| What you see | Three itemised components | One combined rate |
| Cost predictability | Varies with card mix | High |
| Transparency | Full | Limited |
| Benefit from low cost cards | Passed straight to you | Absorbed into the average |
| Statement review time | Moderate | Minimal |
| Suits | Higher ticket values, mixed card profiles | High volume, uniform low value sales |
Which one fits your business?
There is no universally cheaper model. There is only the one that matches how you sell.
One thing worth clearing up first. You may have been told that Interchange++ is for large merchants only. That is an accurate description of who has historically been offered it, and a poor description of how the pricing works. The model was built around enterprise operations, so providers set volume requirements and smaller merchants stopped asking. Qashier removes the volume requirement, which changes the question from whether you are big enough into whether the model suits you. Only the second question is worth your time, and the four businesses above show why it has nothing to do with size.
Because we offer both, we work out which one fits rather than fitting you to whatever we happen to run.
Blended works well when
You process a high volume of similar, lower value transactions from mostly local customers, and you would rather spend your time on the shop floor than on a statement.
Cafés, bubble tea, salons, minimarts
Interchange++ works well when
Your average ticket is higher, your customer mix includes overseas or corporate cards, and someone in the business will read the breakdown and act on it.
Clinics, B2B suppliers, furniture, electronics
What sits outside both models
This is the part merchants miss most often. Neither model covers everything you will be billed for.
Note
Charges such as chargebacks, refund handling, cross-border transactions, currency conversion, terminal rental and PCI DSS compliance are applied separately, whichever pricing model you are on. When you compare two quotes, compare the full fee schedule. A lower headline rate paired with heavy add-on charges can easily cost more than a slightly higher rate with none.
Five questions for your payment provider
Ask these five, and notice how quickly the answers come. If your provider cannot answer the first two quickly, that already tells you something.
Which pricing model am I on right now, and can I see a sample statement?
What share of my transactions are debit versus credit, local versus overseas?
What is billed separately from my processing rate?
Is there a monthly minimum, a lock in period, or an early termination fee?
At what point would switching models make sense for me?
Both models, on one terminal
Qashier supports Interchange++ and blended pricing, whether you run a single outlet or a multi-outlet SME. Same terminal, same QashierHQ back office, same local support. Only the way your fees are presented changes.
If you are already trading, your own effective rate is the strongest starting point, and our guide to reading your merchant statement shows you how to work it out in about ten minutes. If you are just starting, we will estimate from your business type and expected volume, then review it again once you have real trading behind you.
We would rather you were on the model that suits you than the one that suits us, so here is how we work it out together.
We start with how you sell
Your average ticket size, roughly how many transactions you take, and the sort of customers who walk through the door.
We compare both options against that profile
The same trading pattern priced under Interchange++ and under blended, so you see the difference rather than take our word for it.
We recommend one and explain why
Including the trade off you are accepting, and the point at which it would make sense to switch.
Not sure which model is right for you?
Qashier offers both, and you do not need enterprise volume to ask about either. Tell us what you sell and how your customers tend to pay, and we will tell you which model we would put you on and why. If that is blended, we will say so.
Ask which pricing model fits your businessFrequently asked questions
What is the difference between Interchange++ and blended pricing?
Both models charge you the same three underlying costs: interchange, the card scheme fee and your provider's processing fee. Interchange++ shows those three components separately on every transaction. Blended pricing averages them across your expected card mix and quotes a single rate. The difference is presentation, not the existence of the costs.
Which pricing model is cheaper for a small business in Singapore?
It depends on your card mix and how many transactions your revenue is spread across, not on your business size. Interchange++ tends to win when a large share of sales run on lower cost local cards, because that lower cost passes straight through to you. Blended tends to win when a large share of sales run on premium, corporate or overseas cards, because the average protects you from the expensive ones.
Is Interchange++ available to small businesses?
Traditionally it has not been. Most providers set a volume requirement before they will discuss it, which is why smaller merchants are rarely offered the choice. Qashier removes that volume requirement, so a single outlet can ask about Interchange++ on the same footing as a chain. Eligibility still applies, and being offered the model is not the same as it being right for you.
Can I switch between pricing models later?
Yes. The pricing model is a commercial arrangement rather than a technical one, so the terminal on your counter and your back office do not change. What usually prompts a switch is a change in your card mix or your average sale value, which is why it is worth reviewing the question once a year rather than once.
What fees are charged outside the processing rate?
Chargebacks, refund handling, cross-border transactions, currency conversion, terminal rental and compliance charges sit outside the rate on both models. When you compare two quotes, compare the full fee schedule rather than the headline percentage. A lower rate attached to heavy add-on charges regularly costs more than a slightly higher rate with none.
Which payment methods does QashierPay accept in Singapore?
QashierPay accepts Visa, Mastercard and AMEX, along with PayNow, GrabPay, ShopeePay, Atome and Alipay+ and other international e-wallets. In store card payments settle T+1. Qashier holds a Major Payment Institution licence from the Monetary Authority of Singapore. The full list sits on the QashierPay rates page.
Do I need to install an app to use Qashier?
No. QashierHQ runs in a web browser on any device, so your sales, fees and settlement records are available wherever you are. There is nothing to download and nothing to install.
Disclaimer
This article is general information and not financial advice. Fees and interchange rates vary by card, transaction type and market. All figures shown are illustrative examples used to explain the pricing models and are not a Qashier rate quote. Qashier is a Major Payment Institution licensed by the Monetary Authority of Singapore.