An interchange fee is the amount a merchant pays to the customer’s issuing bank each time a card transaction is processed. This fee is set by the card networks and varies based on factors like card type (debit, credit, prepaid, etc.), merchant category code, transaction method, and region. Interchange represents the base cost of processing and is a key part of pricing models such as “interchange-plus.”
Understanding how interchange works helps you analyze processing costs and evaluate provider quotes. AltoPay uses transparent pricing models so you can see how interchange impacts your total fees. If you notice spikes in cost, changes in interchange rates may be the cause.
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
