Buckaroo offers the possibility to invoice credit and debit cards via the Interchange++ model. This is only possible if the card payment methods are contracted directly through Buckaroo and the merchant does not have its own contract with an acquirer such as Worldline or EMS.
What does Interchange++ entail?
The costs of a card transaction consist of three parts:
- Interchange fees: the costs of the bank or agency that issued the card.
- Scheme fees (first +): the costs of the scheme that processes the transaction (such as Mastercard and Visa).
- Acquirer fees (second +): the fees of the acquirer that processes the transaction.
The exact amount of the interchange and scheme fees of a transaction is determined by many factors. Examples of such factors are:
- The country in which the company resides
- Debit or credit card
- Issuing country of the card
- Type of card (private/premium/corporate)
By invoicing through an Interchange++ model, the interchange and scheme fees are directly passed on to the merchant. In addition, the merchant pays a separate rate for the acquirer costs which are determined by Buckaroo. These costs replace an otherwise invoiced all-in rate.
This way of invoicing gives the merchant more insight into the exact costs of his card transactions.
It also ensures a fairer price: the merchant pays a lower amount for cards with low interchange and scheme fees than for cards with high interchange and scheme fees.
How does Buckaroo invoice this?
Because the interchange and scheme fees are only known at a later time, Buckaroo charges a fixed percentage for interchange and scheme fees as a deposit. We call this item Interchange+. It is calculated daily over the volume of the merchant’s card transactions and is part of the regular transaction costs.
Once Buckaroo has received the actual interchange and scheme fees, we will calculate how much has been over or undercharged. A correction is made which is settled with the merchant’s balance through the regular transaction costs. Since the correction can be a restitution, it is possible that money is given back instead of being withheld
The the total correction that has been settled throughout the month and the total Interchange+ costs will be shown separately on the Buckaroo invoice.
How do I gain insight into my interchange and scheme fees?
If the merchant is invoiced according to the Interchange++ model, an additional report will appear in the Buckaroo Plaza. The "Interchange+ report" will appear under the "Financial" menu item. In this report, the merchant can see the following for each card transaction:
- How much Buckaroo has charged as Interchange+
- How much the actual interchange and scheme fees are
- The amount of the correction
- The date on which the correction was made
The actual fees, the correction and the correction date will not be visible immediately as these will only be known at a later point in time.
The merchant can use this report to gain insight into the costs as well as verify the costs and corrections charged/settled by Buckaroo.