Interchange
Accepting credit cards at a business comes with costs. The largest portion of the costs is known as interchange.
Components of Your Credit Card Processing Fee
Each time you accept a credit card, you are charged a fee by the credit card processor. This fee consists of three main components:
1.Interchange Fees: The largest portion, paid to the banks that issue credit cards to customers. These fees are non-negotiable and are set by Visa and Mastercard, who publish detailed fee tables for various interchange categories.
2.Assessments: Additional fees that go to the credit card networks (Visa, Mastercard, etc.).
3.Processor Markup: The fee charged by your credit card processor for their services.
What Are Interchange Fees?
Interchange fees are the costs associated with different interchange categories, each with specific requirements. When a transaction meets these requirements, it is charged the corresponding interchange fee.
Interchange rates vary widely, from less than a percent for some debit cards to as high as 2.95% for certain downgrade categories.
How We Can Help
Free, No-Obligation Savings Analysis: We offer a complimentary review of your credit card processing statements. Simply provide us with 2-3 months of statements and 30 minutes of your time. Our analysis will uncover opportunities to optimize both hard and soft processing costs, providing you with a clear plan to save money.
Ongoing Monitoring: If you decide to proceed, we conduct 30, 60, and 90-day reviews to ensure you continue saving as projected.
You can view the published interchange fees here:
- Visa Interchange Fees
- Mastercard Interchange Fees
Note that Discover and American Express do not publish their interchange schedules. In fact, American Express uses a different term for their fees, although the concept is similar.
Simplifying Interchange Fees
The published interchange tables can be complex. At CardFellow, we offer articles that clearly explain the various interchange categories, their requirements, and the associated fees to help you better understand these costs.