What Are Interchange Fees?
Every time a customer uses a debit or credit card to make a purchase, the business pays a small fee as part of the transaction cost. While multiple parties are involved in processing the transaction, one of the most significant fees is the interchange fee. This is a fee paid by the acquiring bank to the issuing bank for each card transaction.
The acquiring bank is the financial institution that processes the card payment on behalf of the business. The issuing bank is the institution that provides the card to the customer. Though the fee is transferred between banks, it ultimately becomes a cost that the merchant pays as part of their card processing expenses.
Interchange fees are designed to compensate issuing banks for several services, including transaction approval, fraud protection, and providing credit. These fees help sustain the infrastructure that enables card-based transactions to take place globally and at scale.
Why Interchange Fees Exist
To understand the need for interchange fees, consider the roles and risks assumed by the issuing bank. When a customer swipes or taps a card, the issuing bank verifies the transaction, guarantees the funds, and often provides credit. This introduces multiple risks, including the potential for fraud, customer disputes, and defaults on payment.
Interchange fees serve to offset these risks and fund the infrastructure needed to detect and prevent fraud, settle payments, and provide customer support. These fees also encourage banks to issue more cards and improve their fraud detection systems, which in turn benefits the entire card payment ecosystem.
Components of Card Processing Fees
Accepting card payments requires collaboration between various financial institutions and systems. Each step incurs specific costs that are bundled into the total fee a business pays to accept a card transaction. This total cost is known as the Merchant Discount Rate (MDR). It includes three major components:
Interchange Fees
Paid to the issuing bank, this is usually the largest portion of the MDR.
Card Scheme Fees
These are charged by card networks like Visa or Mastercard for the use of their payment infrastructure. The card networks facilitate communication between the acquiring and issuing banks.
Acquirer Markup
This fee is charged by the acquiring bank or payment processor for processing, settlement, and support services.
Together, these fees are deducted from the transaction amount before the funds reach the merchant’s account. The interchange fee typically represents 70 to 90 percent of the MDR, making it a key area of concern for cost management.
How Interchange Fees Are Calculated
Interchange fees are not set by the banks themselves but are determined by card networks. These rates are reviewed and updated, usually on a semi-annual basis, depending on the country and the network in question. The fee structure often includes a fixed fee component and a variable percentage based on the transaction amount.
For example, a transaction might carry an interchange fee of 1.65% plus $0.10. On a $100 sale, this equates to $1.75 in interchange costs. The actual fee you pay may differ depending on several factors.
Factors That Influence Interchange Rates
Card Type
Different types of cards carry different fees. Credit cards often have higher interchange fees than debit or prepaid cards due to the added risk and cost of extending credit.
Card Network
Visa, Mastercard, American Express, and other networks have their own interchange rate structures. Each network defines rates based on card type, transaction method, and industry category.
Transaction Type
Card-present transactions, where the customer physically uses their card in-store, are generally considered less risky and incur lower fees. Card-not-present transactions, such as those made online or over the phone, carry higher fees due to the increased risk of fraud.
Cardholder Type
Personal cards usually carry lower interchange fees than commercial or corporate cards. This reflects the increased value, risk, and complexity associated with business-related transactions.
Geographic Location
Domestic transactions tend to incur lower interchange fees than cross-border transactions. International payments may also include currency conversion costs and additional processing fees.
Merchant Category Code (MCC)
Each business is assigned a Merchant Category Code that represents its industry. Some categories, like nonprofits or education, may benefit from reduced interchange rates. Card networks use these codes to determine eligibility for preferential rates.
Domestic vs Cross-Border Transactions
Businesses operating globally need to consider the cost differences between domestic and international card payments.
In a domestic transaction, the card is issued and used in the same country. These transactions are usually processed through local networks and incur lower interchange fees.
In a cross-border transaction, the card is issued in one country and used in another. These transactions pass through international systems, adding complexity, security checks, and additional costs. Card networks often assign higher interchange fees to cover the risks and processing needs of these transactions.
Currency conversion adds another layer of cost, which can be influenced by foreign exchange rates and bank conversion charges. These fees can significantly affect margins for international sales.
Role of Merchant Category Codes
Every business that accepts card payments is assigned a four-digit Merchant Category Code by the acquiring bank or card processor. This code categorizes the business according to its industry and affects how interchange fees are applied.
Some industries are deemed essential or lower-risk by card networks and are granted reduced rates. These can include:
- Educational institutions
- Charitable organizations
- Utility service providers
- Public transport operators
The use of an accurate MCC is critical. An incorrect classification could result in paying higher interchange fees than necessary or missing out on discounts your business is eligible for. Businesses should confirm their MCC with their acquiring bank and update it if there has been a significant change in their operations.
Card-Present vs Card-Not-Present Transactions
Card-Present Transactions
These transactions occur when the cardholder is physically present, and the card is read through a chip, magnetic stripe, or contactless method. They benefit from lower interchange fees due to:
- Verified identity (PIN or signature)
- Reduced fraud risk
- Faster settlement and authorization
Examples include in-store purchases at retail shops, restaurants, or service counters.
Card-Not-Present Transactions
These include online, mobile, and phone transactions where the card is not physically presented. They are considered higher risk because identity verification is weaker, and the likelihood of fraud or chargebacks is higher. As a result, these transactions incur higher interchange fees.
Businesses that operate primarily through eCommerce must take into account these added costs and often need to invest in advanced fraud detection and secure payment gateways to protect both themselves and their customers.
How Interchange Fees Impact Your Bottom Line
Even small differences in interchange fees can lead to substantial costs over time. For example, a business processing $2 million in annual credit card sales at an average interchange rate of 2% would pay $40,000 per year in interchange fees alone.
This cost is often embedded in broader transaction fees, making it difficult to pinpoint unless itemized statements are reviewed. Over time, as transaction volumes grow, the financial impact of interchange fees becomes more significant and directly affects profit margins. Cost-effective payment strategies require not only selecting the right provider but also choosing appropriate payment models and maintaining efficient operational practices.
Global Variation in Interchange Fee Regulations
Different countries take different approaches to regulating interchange fees. These variations can have a profound effect on international businesses.
European Union
In the European Economic Area, interchange fees are capped by regulation. Credit card interchange fees are limited to 0.3% of the transaction value, and debit card fees are capped at 0.2%. These limits have been set to promote transparency, competition, and fairness.
United States
Interchange fees in the U.S. are not capped in the same way. The Durbin Amendment regulates debit card fees for large financial institutions, but credit card fees remain market-driven. As a result, average interchange fees hover around 2% but can vary significantly depending on the card and network used.
Australia and Canada
Both countries have introduced regulations to reduce and cap interchange fees in recent years. The goal is to balance consumer convenience with reduced costs for merchants.
Businesses operating internationally must account for these regulatory differences when assessing the cost of accepting card payments in various markets.
Business Case for Monitoring Interchange
Proactive monitoring of interchange fees is essential for business finance teams aiming to manage transaction costs and improve financial efficiency. While many businesses treat payment processing as a fixed overhead, others treat it as a variable cost that can be optimized through strategic planning.
The first step is understanding how interchange fees are charged and what factors influence them. Once businesses have this insight, they can begin exploring options for cost reduction, whether through negotiating with payment providers, updating merchant category codes, or encouraging more cost-effective payment methods from customers.
How Businesses Can Optimise Cost Through Strategic Payment Structures
Understanding the underlying structure of interchange fees is only the first step in managing the cost of accepting card payments. The next step for business finance professionals is evaluating how these fees are packaged and charged through different pricing models.
The way your payment provider presents and applies fees can significantly impact your cost transparency, reporting accuracy, and ability to optimize margins. Two primary pricing models dominate the payments industry: Interchange++ and Blended pricing. Each model comes with its own advantages, limitations, and suitability depending on business size, transaction volume, and industry.
Interchange++ vs Blended Pricing Models
Payment providers typically offer one of two models for charging merchants card processing fees: Interchange++ and Blended. The key difference between these models lies in the level of transparency and detail provided in fee breakdowns. Choosing the right model can have a measurable effect on your company’s financial performance.
Interchange++ Pricing
This model separates all the fees that make up the total processing cost. It is made up of three distinct layers:
- Interchange fee: Paid to the cardholder’s bank (issuer).
- Card scheme fee: Paid to the card network for using its infrastructure.
- Acquirer markup: The fee charged by your payment processor or acquiring bank.
With Interchange++, the exact cost of each transaction is itemised and visible to the business. This level of detail provides greater control and allows finance teams to analyse trends and optimise payments strategy.
Advantages of Interchange++
- Full cost transparency: You see exactly how much of your fee is going to each party.
- Better negotiation leverage: Knowing the markup charged by your processor enables more effective fee discussions.
- Potential for cost savings: Businesses with high transaction volumes or a favourable card mix can reduce total costs over time.
Drawbacks of Interchange++
- Complexity: Statement reconciliation can be more time-consuming due to the granular data.
- Variable costs: Transaction costs vary depending on card type, region, and network, making it harder to forecast monthly fees.
Blended Pricing
Under the Blended pricing model, all components of the processing fee are combined into a single flat rate. For example, a provider may charge a fixed fee of 2.9% per transaction, regardless of the type of card or transaction origin.
Advantages of Blended Pricing
- Simplicity: Easy to understand and reconcile.
- Predictability: Flat fees simplify budgeting and forecasting.
- Appeals to small businesses: Particularly useful for lower-volume merchants who prefer ease of setup and accounting.
Drawbacks of Blended Pricing
- Lack of transparency: Merchants cannot see how much they are paying in interchange vs markup.
- Hidden costs: Businesses may be overpaying for certain low-cost transactions without realising it.
- Less flexibility: Difficult to identify where cost savings can be made without access to detailed fee data.
Choosing the Right Pricing Model
Deciding between Interchange++ and Blended pricing depends on several operational and financial factors. Each model serves different types of businesses more effectively.
When Interchange++ Makes Sense
- Businesses process high volumes of transactions each month.
- Merchants with a broad mix of domestic, international, credit, debit, and commercial card transactions.
- Finance teams capable of analysing detailed statements and reporting tools.
- Companies aiming to reduce fees through data-driven optimisation.
When Blended Pricing is Suitable
- Small businesses or startups with low or moderate sales volumes.
- Merchants looking for ease of use and predictable monthly billing.
- Organisations that do not have the internal resources to manage complex reconciliation.
Over time, many growing businesses transition from Blended to Interchange++ pricing to improve cost control. The move often coincides with higher volumes, more varied transactions, or expansion into new markets.
Understanding Card Mix and Its Effect on Fees
One of the most overlooked but impactful variables in payment processing is card mix. This refers to the types of cards your customers use when making payments and can have a dramatic influence on processing costs—especially under the Interchange++ model.
Personal Debit Cards
Generally the lowest-cost card type to process. Interchange rates are minimal, and fraud risk is low. Transactions are often funded directly from a consumer’s bank account.
Personal Credit Cards
Mid-range fees. These carry slightly higher interchange due to the credit risk assumed by the issuing bank. Commonly used for larger purchases and online transactions.
Commercial and Corporate Cards
These carry significantly higher interchange fees, sometimes double or triple the rate of consumer cards. They are often used by employees of businesses for travel, procurement, and general expenses.
International Cards
Foreign-issued cards used in cross-border transactions carry higher fees due to exchange rate risk, network routing, and additional processing steps.
By tracking card type data, businesses using Interchange++ pricing can identify which card categories are costing the most and explore ways to influence customer payment behavior or negotiate better terms.
Strategies for Reducing Interchange Costs
While interchange fees are mostly non-negotiable because they are set by card networks, there are several ways businesses can manage and reduce their effective interchange costs.
Encourage Lower-Cost Payment Methods
Where possible, offer incentives or default options that promote card-present transactions or encourage the use of lower-cost cards. For example, some businesses apply surcharges to credit card payments or offer discounts for debit card usage.
Use Advanced Payment Gateways
Modern payment gateways with intelligent routing features can optimize transaction paths to reduce costs. Some systems detect the most cost-effective network or acquire path for each transaction based on predefined criteria.
Maintain High Authorisation and Settlement Rates
Avoid delays in settlement and ensure that transaction data is complete and accurate. Incomplete or late settlement can lead to downgraded transactions, resulting in higher interchange classifications.
Reassess Your Merchant Category Code
Ensure your business is correctly classified with an accurate Merchant Category Code. Some industries benefit from reduced interchange rates due to their public utility or nonprofit status. An incorrect classification may lead to avoidable higher fees.
Monitor Statements and Benchmark Fees
Regularly reviewing your merchant processing statements helps identify inconsistencies, hidden charges, or areas of potential optimization. Benchmarking your fee structure against similar businesses can also provide useful insights.
Evaluating the Impact of Interchange on Margins
For finance professionals, interchange is more than just a line item—it directly impacts gross margins and net profitability. High interchange fees eat into each transaction’s revenue and accumulate across the customer base.
Understanding this cost structure allows businesses to make strategic decisions in areas such as:
- Pricing strategy
- Discounting policies
- International expansion
- Fraud prevention investments
- Payment provider selection
A data-driven approach to payments can improve financial forecasting and allow better planning for operational expenditures and growth investments.
Case Study: Transaction Scenarios Under Each Model
To illustrate the difference between Interchange++ and Blended pricing, consider a business that processes a $1,000 transaction using a corporate credit card issued overseas.
Under Blended Pricing
The business is charged a flat rate of 2.9%.
Processing cost = $29.00
No visibility into:
- How much is going to the card issuer
- What percentage is charged by the card scheme
- What the processor earns in markup
Under Interchange++
- Interchange Fee: 2.2% = $22.00
- Scheme Fee: 0.2% = $2.00
- Acquirer Markup: 0.5% = $5.00
Total = $29.00
In this example, the final cost is the same. But the Interchange++ breakdown reveals that the business might reduce the markup through negotiation or reduce scheme fees through transaction optimisation. This level of insight creates opportunities for cost improvement, especially at scale.
Importance of Transparency in Financial Reporting
Transparent pricing models align better with financial accountability. They help finance professionals reconcile statements faster, allocate costs more accurately, and plan for future transactions with greater confidence.
Moreover, transparency supports better stakeholder communication. Whether reporting to senior management, presenting forecasts, or preparing audit documentation, itemised cost structures are easier to explain and defend than opaque blended charges.
Preparing for Scale with Interchange++
As businesses expand their operations—especially into international markets or higher-volume digital commerce—they often face more diverse transaction scenarios. Interchange++ pricing becomes increasingly valuable in this context, providing detailed visibility across:
- Card mix variations
- Market-specific fee trends
- Network routing preferences
- Fraud scoring thresholds
While the model requires a steeper learning curve, it enables better forecasting, budget control, and strategic financial planning over the long term.
Investing in tools that visualise and analyse payment data can help extract the full value of the Interchange++ model, ensuring finance teams make well-informed decisions supported by real-time metrics and historical trends.
Legal and Regulatory Landscape Shaping Card Payment Costs
Interchange fees are not just financial mechanisms—they are also the subject of complex regulatory frameworks that influence how much merchants pay and how card networks operate. These rules vary widely by region, reflecting differing priorities among regulators, such as consumer protection, market competition, and cost transparency.
Understanding the regulatory environment is essential for businesses that operate in multiple jurisdictions or are considering international expansion. Compliance is not only about avoiding penalties; it is also an opportunity to optimize card processing strategies within each market’s legal boundaries.
Purpose Behind Interchange Regulation
Governments and financial regulators across the world have sought to rein in interchange fees due to growing concerns about their economic impact on merchants and, indirectly, on consumers. The core objectives behind regulatory interventions typically include:
- Promoting fair competition among payment processors and card networks
- Ensuring pricing transparency for businesses and consumers
- Reducing the cost burden on small and medium-sized enterprises
- Protecting consumer interests in a digital payment landscape
- Encouraging innovation and new entrants in the payment ecosystem
Interchange Fee Regulation in the European Union
The European Union has one of the most comprehensive and well-established regulatory frameworks for interchange fees. The Interchange Fee Regulation (IFR) came into force in 2015 and introduced strict caps on fees for consumer debit and credit card transactions within the EU.
Key Provisions of the EU Interchange Fee Regulation
- Consumer debit card interchange fees are capped at 0.2% of the transaction value.
- Consumer credit card interchange fees are capped at 0.3%.
- Rules apply only to intra-European transactions (where both card issuer and acquirer are located in the EU).
- Commercial and corporate cards are excluded from these caps.
- Retailers have the right to steer customers toward preferred payment methods.
- Transparency rules require card providers to disclose interchange and processing costs.
Impact on Businesses in the EU
For merchants operating within the EU, these caps have resulted in lower average processing costs. The regulation has particularly benefited sectors with low average transaction values, such as retail and food services. However, businesses that accept a high volume of corporate or cross-border cards may still encounter elevated fees.
Interchange in the United States
The regulation of interchange fees in the United States has taken a different path. The U.S. payment ecosystem is primarily governed by market competition and selective regulatory intervention.
The Durbin Amendment
The most notable legislative action in the U.S. is the Durbin Amendment, passed as part of the Dodd-Frank Act in 2010. This regulation primarily affects debit card transactions.
Key Provisions of the Durbin Amendment
- Interchange fees on debit cards issued by banks with over $10 billion in assets are capped at approximately $0.21 per transaction, plus 0.05% of the transaction amount, and a fraud prevention adjustment of up to $0.01.
- Only applies to regulated banks; smaller institutions are exempt.
- Requires merchants to have access to at least two unaffiliated debit card networks for transaction routing.
No Federal Caps for Credit Cards
Credit card interchange rates remain unregulated at the federal level in the U.S., often ranging between 1.5% and 3.5%. These fees are set by card networks and have increased over time, drawing criticism from merchant associations and some lawmakers.
Regulatory Approach in Canada
Canada regulates interchange through a voluntary framework negotiated between the federal government and card networks. These voluntary commitments, introduced in 2015, aim to bring greater transparency and control over credit card processing costs.
Canadian Regulatory Highlights
- Major card networks agreed to reduce average interchange rates to 1.5% of transaction volume.
- Small businesses benefit from simplified and lower-rate pricing structures.
- New rules introduced in recent years allow merchants more flexibility in applying surcharges to credit card transactions.
- Disclosure requirements ensure merchants receive transparent statements from acquirers.
Although not legally binding, these commitments are monitored by Canada’s Department of Finance and have shaped pricing strategies across the Canadian payments industry.
Interchange Fee Regulation in Australia
Australia has taken a proactive stance on interchange and payment system regulation. The Reserve Bank of Australia (RBA) oversees and enforces rules that aim to reduce merchant costs and promote efficiency.
Australian Interchange Rules
- Debit card interchange fees are capped at 0.5% for most transactions.
- Credit card interchange fees are capped at an average of 0.8% across all transactions.
- Acquirers must provide merchants with itemised cost breakdowns.
- Surcharging is permitted under certain conditions, provided it reflects actual processing costs.
Least-Cost Routing Initiatives
To further reduce costs for merchants, the RBA has promoted Least-Cost Routing (LCR) for dual-network debit cards. This gives merchants the ability to route transactions through the lower-cost network, regardless of cardholder preference.
Asia-Pacific Interchange Environment
Regulatory practices in Asia-Pacific countries vary widely, ranging from strict control in some regions to laissez-faire approaches in others.
India
India’s payment ecosystem is heavily regulated by the Reserve Bank of India (RBI). The RBI has imposed caps on interchange fees for debit cards to promote digital adoption and financial inclusion.
- Debit card interchange fees are capped at lower levels for small-ticket transactions.
- Unified Payments Interface (UPI) transactions are exempt from interchange altogether, pushing low-cost digital payments.
Singapore
Singapore promotes market-driven pricing but also encourages transparency and consumer protections. The Monetary Authority of Singapore (MAS) monitors fees but does not currently impose direct caps on interchange rates.
Japan
Japan has been promoting cashless payment adoption with government support and incentives. Although interchange fees are not capped by law, the government encourages competitive pricing to stimulate digital transactions.
Interchange Regulation in Latin America
Several countries in Latin America are in the process of reforming their payment systems. Rising digital payment adoption is pushing governments to reconsider outdated fee structures.
Brazil
Brazil’s Central Bank has taken steps to modernise the country’s payments system, including imposing caps on interchange fees for prepaid and debit cards.
- Debit card interchange fees are capped at 0.5%.
- Prepaid card fees are capped at 0.7%.
- The introduction of PIX, an instant payment platform, is further reducing reliance on cards.
Mexico
Mexico’s Banco de México has begun implementing transparency rules for payment service providers. Interchange fees remain high compared to global averages, but reforms are under discussion.
Cross-Border Transactions and Interchange
Interchange fees increase significantly when transactions occur across borders. These cross-border fees are typically applied when the card issuer and merchant are located in different countries.
Why Cross-Border Interchange is Higher
- Added fraud risk from international transactions
- Currency conversion and settlement complexity
- Network and compliance overhead
- Increased chargeback and dispute rates
These factors justify the elevated fee structures from the perspective of card networks and issuers, but they often pose a significant burden for merchants serving international customers.
Strategies for Managing Cross-Border Interchange
- Use multi-currency pricing to settle transactions in the cardholder’s local currency
- Employ local acquiring solutions in target markets
- Minimise currency conversions through settlement strategies
- Optimise chargeback handling to maintain good standing with card networks
Merchant Category Codes and Regulatory Treatment
Merchant Category Codes (MCCs) are another dimension of interchange regulation. MCCs are used by card networks to classify businesses based on the type of goods or services they provide.
Preferential Interchange Rates by Industry
Certain categories receive favourable treatment under regulatory or network-specific frameworks. Examples include:
- Charities and nonprofits often benefit from reduced or zero interchange fees.
- Educational institutions and government entities may qualify for lower rates.
- Utilities and transportation may fall under negotiated rates based on volume and service importance.
Ensuring correct MCC classification is a regulatory and cost optimisation consideration. Errors in classification can lead to higher fees or noncompliance with network rules.
Regulatory Trends and Future Considerations
Interchange regulation continues to evolve globally. Several trends are shaping the future of interchange and payment system compliance:
Push for Real-Time Payment Networks
Regulators are supporting or directly launching real-time payment networks, such as UPI in India, PIX in Brazil, and FedNow in the U.S. These networks typically operate at a lower cost than traditional card schemes and may pressure interchange rates downward over time.
Expansion of Surcharge Rights
In many jurisdictions, regulators are allowing or expanding the rights of merchants to surcharge customers for using certain payment methods. This allows businesses to offset interchange fees more transparently but introduces customer experience challenges.
Pressure on Credit Card Fees
Merchant lobbying groups are increasingly advocating for regulatory caps on credit card interchange, similar to debit card frameworks. While progress is limited in some regions, political and consumer pressure is mounting.
Data and Reporting Standards
New regulations in Europe, North America, and Asia are mandating better reporting and disclosure by payment service providers. This aligns with broader trends in financial transparency and accountability.
Environmental and Social Compliance
Some regulators are exploring the intersection of payment processing and sustainability goals. Emerging frameworks may encourage fee reductions for merchants aligned with environmental or social impact standards.
Key Takeaways for Business Finance Professionals
For any business accepting card payments across jurisdictions, it is essential to monitor and comply with regional regulations on interchange. Finance teams should:
- Understand the legal caps and requirements in each market of operation
- Maintain correct MCC classification to avoid misapplied rates
- Evaluate cross-border transaction strategies based on regulatory friction
- Stay ahead of real-time payment adoption and its impact on interchange
- Build internal or external expertise for compliance management
Staying informed is not just a matter of compliance—it directly impacts margins, pricing strategies, and customer experience.
Conclusion
Interchange fees, while often seen as a behind-the-scenes element of card transactions, hold considerable power over a business’s financial performance. Understanding how they work, what influences their rates, and how they are regulated across regions is essential for any finance professional tasked with managing operational costs and improving profit margins.
We explored the fundamental role of interchange fees within the broader payment processing ecosystem. We outlined how they are calculated, the core components of card processing fees, and why these costs matter so much to businesses—especially those accepting large volumes of card payments. This foundational knowledge is critical for identifying where these fees appear in your cost structure and how they affect profitability.
Examined practical strategies for managing and minimising interchange costs. From negotiating with payment providers to selecting the right pricing model—whether interchangeable or blended—businesses have a range of options to improve cost efficiency. We also covered operational techniques like optimising settlement times and reviewing merchant statements regularly, which can lead to meaningful savings and better decision-making.
We turned to the regulatory landscape, which is increasingly shaping how interchange rates are applied around the world. Regional differences in fee caps, reporting requirements, and real-time payment alternatives offer both challenges and opportunities. A firm grasp of the legal and compliance environment can help businesses stay ahead of changes, avoid penalties, and even leverage regulation to their advantage.
Ultimately, interchange fees are more than just a line item in your processing statement—they are a strategic lever. When managed with insight and precision, they can contribute to stronger cash flow, better customer experiences, and more sustainable growth. By staying informed and proactive, finance leaders can navigate the complexities of interchange with confidence and turn a cost centre into a competitive edge.
