Interchange fees & rates

Interchange Fees & Rates: What You Need to Know

Interchange fees are easily the most confusing transaction fees you need to understand as a merchant, but they are also arguably the most important. They make up the bulk of the fees you pay and can vary widely across industry & customer base, and it’s all too common for shady merchant services providers to charge extra percentages or purposely confuse clients on the terms of interchange in hopes of getting more money. We’re sick of seeing that happen, and that’s why we’re writing this blog: to bring some clarity to interchange fees. The easiest way to understand interchange fees is by first understanding the basic definition & reasons why they exist before digging into the variations and more complex aspects of how interchange affects your business. With that in mind, let’s start at the top. Definition of Interchange Fees In short, interchange rates and fees are fees the issuing bank…

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What is interchange

The 3 Most Important Things to Know About Interchange Fees

When you’re looking for a credit card processor you’ll hear about different pricing structures such as tiered pricing, flat-rate pricing and interchange plus pricing. We want to pull back the curtain on a piece of interchange plus pricing. If you already have a processor, you might know about interchange or interchange plus pricing but what we’re going to talk about today is exactly what the interchange fee is. Whether this information is familiar or new, we hope it will help you make a smart decision about choosing a payment processor. 1. Interchange Is Visa’s® Cut (and MasterCard’s® and Discover’s® and Amex’s®… ) To put it simply, interchange is the fee that Visa, MasterCard, Discover, etc. take out of the transaction. It’s the same for every single merchant. All of them. Everywhere. So, when you see an interchange fee think to yourself “Visa’s cut.” These fees are standardized and the sandwich…

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