Global payments processor and technology provider, RS2, has today announced the release of its latest whitepaper, “Real-Time Fee Calculation and Settlement for a Real-Time World,” spotlighting a fundamental challenge facing the payments industry: while real-time transactions are becoming the global standard, fee calculation and interchange settlement remain stuck in the “old world”.

As real-time payments surge, expected to account for one in three transactions globally by 2030, RS2’s new paper explores how acquirers, PSPs, and merchants are losing up to $3.65 million annually from fixed fee models and outdated overnight settlement processes.

“While real-time payments now deliver unparalleled convenience and choice, fee calculation and interchange reporting are stuck in the ‘old world’ of overnight settlement,” said RS2’s CEO, Radi El Haj. The other key findings from the whitepaper include:

• Interchange fees are unpredictable and can erode acquirer/PSP margins up to 33% with a 10bps shift in scheme fees.
• RS2’s AI-powered transaction routing and fee engine dynamically calculates interchange and scheme fees before submission, enabling optimal routing and pricing in real-time.
• PSPs and acquirers using RS2’s system can:
  • Save up to €8.50 per transaction on cross-border card payments.
  • Increase annual revenue by up to $1M by switching to dynamic pricing.
  • Protect margins even when interchange rates rise, with a delta of $4.65M versus traditional models.
• Fraud detection is enhanced by flagging “cost anomalies”, which are unusually high fees that may indicate suspicious activity.

“Our decision engine selects the most cost-efficient route for each transaction,” added El Haj. “Whether it’s routing a domestic transaction through a lower-cost regional processor or splitting cross-border payments across rails, RS2 ensures clients don’t just meet real-time expectations, they profit from them.”

One case study in the paper highlights a €500 transaction where traditional card routing would incur €9.50 in fees. RS2’s system routes the same payment as a SEPA Instant Payment at just €1, an €8.50 saving per transaction. Over thousands of transactions, this creates a dramatic cumulative benefit for merchants and PSPs alike.

The paper also explores RS2’s broader capabilities, including:

• Dynamic lending pricing for BNPL and instant credit products.
• Real-time fraud detection using fee anomaly tracking and contextual risk scoring.
• Enhanced regulatory reporting with transparent, granular fee breakdowns aligned with PSD2, PSD3, and global compliance standards.

As real-time payments reshape global commerce, RS2’s technology ensures PSPs, acquirers, and merchants can capitalize on the shift not fall victim to hidden costs and outdated infrastructure.

“As acquiring becomes increasingly commoditized, RS2 delivers a true value-add,” added El Haj. “Smart, AI-led fee and routing optimization transforms how providers compete and grow.”