What is interchange?
The fee the customer's bank charges on every card sale. It's the same no matter which processor you use.
Visa, Mastercard and the banks that issue cards set it. It's the biggest part of most card fees, and it varies by card: a plain debit card costs far less than a rewards card. No processor can lower it.
For example
A plain debit card and a travel rewards credit card carry different interchange fees on the same $100 sale. The rewards card costs more, because its points are paid for out of that fee.
Card processing rates explained →
Related terms
- Interchange-plus pricingYou pay the bank's fee on each card at cost, plus one fixed markup you can see on your statement.
- AssessmentsSmall fees Visa, Mastercard and the other card networks charge on every card sale. They're the same for every business.
- MarkupThe part of your card fee that goes to your processor. It's the only part anyone can negotiate.