Four-party card scheme · Concepts · European Finance Observatory

Roles that need it

Interchange feeAn interchange fee is the fee paid for each card transaction between the acquirer (the merchant's bank) and the issuer (the cardholder's bank), usually set by the card scheme. In the EU, the Interchange Fee Regulation caps it at 0.2% of the transaction value for consumer debit cards and 0.3% for consumer credit cards in four-party schemes.
Merchant acquiringMerchant acquiring is the service of contracting with merchants to accept card and other electronic payments, processing those transactions and paying the funds to the merchant. The acquirer bears the merchant's credit risk, such as chargebacks after a merchant fails, so it underwrites merchants and may hold reserves. PSD2 lists acquiring as a payment service.
Scheme feeA scheme fee is a fee that a card scheme charges issuers and acquirers for using its network and services, such as authorisation, clearing, settlement and brand licensing. Acquirers usually pass scheme fees on to merchants inside the merchant service charge. The Interchange Fee Regulation caps interchange and leaves scheme fees uncapped.
ChargebackA chargeback is the reversal of a card transaction started by the cardholder's bank (the issuer) under card scheme rules after the cardholder disputes it, for reasons such as fraud or goods not received. The merchant's bank (the acquirer) debits the merchant, who can contest it through representment and, if needed, scheme arbitration.

Updated 31 Oct 2026.