Why is interchange so much lower in EU than US?

EU regulation caps consumer credit interchange at 0.30% (debit at 0.20%). US has no equivalent cap — interchange averages 1.65% on rewards cards. This is the single biggest driver of cross-region MDR differences.

What is "risk loading"?

Acquirer markup specifically for high-risk verticals — covers chargeback losses, fraud monitoring, additional underwriting, and reserves. iGaming typically carries 2.5%; adult content 3.5–4%; crypto operators in pre-licence stage 4%+. Note: pre-licence is treated as a transitional state — acquirers will not onboard merchants who have no plan to obtain a licence.

Why does my chargeback ratio affect MDR?

Above 0.5%, acquirers add ~0.8% per percentage-point of chargeback ratio because their fraud-monitoring and dispute-handling costs scale with chargebacks. Reduce chargebacks → reduce MDR.

What is reserve and is it MDR?

Reserve is held back from settlement (typically 5–15% for high-risk). It is not MDR — it is your money held as security against future chargebacks. Released after 6 months on a rolling basis. The cost of capital on this reserve is real and rarely modelled.

CalculatorUpdated May 2026

What you actually pay for card processing

Interchange + scheme + acquirer markup + risk loading + reserves + monthly fees → effective MDR.

Most operators see only the headline acquirer rate. The real all-in cost is 1–3 percentage points higher once you include reserves, monthly platform fees, and per-auth charges. Here is the honest math.

Inputs

Monthly volume (EUR)Average ticket (EUR)RegionRisk tierChargeback ratio %

Effective all-in MDR

5.88%

Monthly cost

€62,875

Annual cost

€754,500

Fee breakdown

Interchange0.30%

Scheme0.13%

Acquirer markup1.80%

Risk loading3.65%

Reserve %10%

Monthly fixed€950

Discuss these results with us.

We will look at your specific case, validate the numbers against our active banking partners, and give you a free, honest pre-approval read — usually within 24 hours.

⚠ For informational purposes only. This is not legal, tax, or financial advice. Verify with a qualified advisor before acting on any output.

Ready to move from numbers to action?

Need a real assessment for your business?

The calculator gives indicative numbers. GetBanked does the actual assessment — which banks and licences will actually work for your vertical, jurisdiction, and volume.

Get free pre-approval Contact us

Methodology & sources

Interchange and scheme fees are scheme-published averages by region. Acquirer markup and risk loading are calibrated against actual published rates of major high-risk acquirers (Worldline, CCBill, Praxis, MerchantE, Aurigo).

Risk loading scales with chargeback ratio above 0.5% at 0.8% per percentage-point. Reserves are not included in the all-in rate but are surfaced separately.

Not modelled: PCI compliance fees, refund fees, retrieval requests, statement fees. Real all-in cost is typically 0.1-0.3% higher than this calculator surfaces.

Frequently asked questions

Why is interchange so much lower in EU than US?: EU regulation caps consumer credit interchange at 0.30% (debit at 0.20%). US has no equivalent cap — interchange averages 1.65% on rewards cards. This is the single biggest driver of cross-region MDR differences.
What is "risk loading"?: Acquirer markup specifically for high-risk verticals — covers chargeback losses, fraud monitoring, additional underwriting, and reserves. iGaming typically carries 2.5%; adult content 3.5–4%; crypto operators in pre-licence stage 4%+. Note: pre-licence is treated as a transitional state — acquirers will not onboard merchants who have no plan to obtain a licence.
Why does my chargeback ratio affect MDR?: Above 0.5%, acquirers add ~0.8% per percentage-point of chargeback ratio because their fraud-monitoring and dispute-handling costs scale with chargebacks. Reduce chargebacks → reduce MDR.
What is reserve and is it MDR?: Reserve is held back from settlement (typically 5–15% for high-risk). It is not MDR — it is your money held as security against future chargebacks. Released after 6 months on a rolling basis. The cost of capital on this reserve is real and rarely modelled.

More calculators

iGaming Licence Cost GGR → NGR Breakdown Bankability Score Tax Residency Time-to-Bank Estimator EMI vs Bank Cost Chargeback Thresholds Forex Broker Capital VASP Licence Selector Rolling Reserve Cost MATCH / TMF Cost MCC Risk Tier Substance Requirements CFC Exposure Capital Requirements AML Self-Assessment Player Funds Reserve GGR → EBITDA

Disclaimer

This calculator is for informational purposes only. It does not constitute legal, tax, or financial advice. Licence fees, tax rates, and regulatory requirements change. You must consult a qualified advisor in each relevant jurisdiction before making any commercial or investment decision. GetBanked and BMC Strategic Inc accept no liability for decisions made on the basis of these calculations.