Understanding Interchange Rates
What are interchange rates? Interchange rates are the fees charged between banks for card-based transactions. The fee charged by an interchange rate can differ from one bank to the next. There are three types of interchange rates: high, low and no interchange rate. Learn more about interchange rates and their effects on card usage. These are some things to remember: Invoice acceptance costs include an interchange charge. Although merchants do not usually need to worry about this fee, some processors will increase their interchange rates. Merchants might not be aware that they are being charged an additional fee. This is because it isn't easily apparent. It is difficult to tell when your card processor has padded their interchange rates without any knowledge of this practice. Here are some tips for avoiding being scammed: The interchange rate depends on various factors, including the processing method (card present versus card not present), the time between authorization and clearin