Beyond interchange, network fees weigh 1.2% to 1.8% on every European transaction. We ran the numbers.
We often talk about interchange, which is capped in Europe. But it's the tree that hides the forest: scheme fees, for their part, are not capped and have risen sharply in recent years.
Added together, interchange, network fees and the acquirer's margin often represent 1.2% to 1.8% of the amount for a European merchant — an invisible tax on the real economy.
A direct rail like SEPA Instant removes most of that chain of intermediaries. That is why NexEuro can offer €0 between individuals and a radically lower merchant rate, without cutting corners on security.