Best Guide For Interchange Rates ?

 An interchange rate is the fee that a card-issuing bank charges a merchant's bank for processing a credit or debit card transaction.

The fee is generally a percentage of the total transaction amount, plus a fixed fee. For example, if you make a purchase using your credit card at a store, the store's bank may charge the card issuer an interchange fee of 1.5% of the purchase price, plus a $0.10 fixed fee.


Interchange rates are set by the card associations (Visa, Mastercard, Discover, and American Express) and are paid by the merchant's bank to the card issuer. The card associations charge different interchange rates for different types of transactions, such as retail vs. online transactions, and credit vs. debit card transactions.


The interchange rate is not a fee charged by the merchant; it is a fee charged by the merchant's bank to the card issuer. The merchant's bank may pass on this fee to the merchant in the form of a higher merchant discount rate (MDR).


The major card associations all have different interchange fee schedules, so it's important to know which schedule applies to your transactions. You can find out more about interchange fees and how they are calculated by contacting your merchant processor or the card associations directly.


Visa: 1.51% + $0.10

Mastercard: 1.55% + $0.10

Discover: 1.56% + $0.10

American Express: 2.5% + $0.10


As you can see, interchange rates vary depending on the type of card used and the type of transaction. For example, Visa's interchange rate for retail credit card transactions is lower than its rate for online credit card transactions. Mastercard's interchange rate for debit card transactions is higher than its rate for credit card transactions.


You can learn more about interchange rates and how they are calculated by contacting your merchant processor or the card associations directly.

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