Interchange

Interchange refers to a fee paid by the acquiring bank (merchant’s bank) to the (customer’s bank) whenever a customer uses a payment card. The fee is set by such as Visa or Mastercard and helps cover the costs and risks associated with processing card transactions.

Interchange fees are typically charged as a percentage of the transaction value or as a fixed amount per transaction. The specific fee varies depending on factors such as card type (credit or debit), transaction channel (in-person or online), and the merchant’s industry. While merchants do not pay interchange directly, they bear its cost through the fees charged by their , which can influence pricing strategies and the overall economics of electronic payments.