An interchange fee is a card-payment fee transferred between the acquirer and issuer under card-network rules. It commonly forms one component of the total price a merchant pays to accept a card.
How is interchange determined?
Rates may vary by card type, transaction channel, merchant category, country, authentication, data quality and regulatory limits.
Who pays interchange?
In a typical purchase, the acquiring side pays interchange to the issuing side and the merchant’s provider passes the cost through or incorporates it into blended pricing.
How is the fee calculated?
If the applicable interchange is 1.5% plus $0.10 on a $5,000 transaction, the amount is $75.10: $5,000 × 1.5% + $0.10.
Is interchange the total merchant fee?
No. Network assessments, acquiring or processor markup, gateway fees, cross-border charges and currency conversion may be additional.
What should a merchant review?
Compare transaction-level category, rate, fixed component, provider markup and any qualification downgrade. Use the same transaction mix when comparing providers.
