Interchange Rate
When processing a credit card transaction, a Discount rate is charged. A discount rate is a portion of the transaction that is taken by the credit card processor as their credit card processing fees.
The credit card processing fees are normally upfront and very transparent on your monthly merchant statement.
What may not be so transparent, is that your processor is also being charged a fee by VISA or MasterCard. This fee is called the Interchange rate.
Below are the Interchange Rates and how they vary based on how the transaction happens.
VISA
1.54%
interchange for a swiped Visa card (point of sale transaction)
1.65%
interchange for a keyed visa card (the card is not physically present)
MasterCard
1.59%
interchange for a swiped MasterCard (point of sale transaction)
1.72%
interchange for a keyed MasterCard (the card is not physically present)
0.35%
additional cost for corporate cards
0.20%
additional cost for premium/airmiles/ rewards cards
When processing a credit card transaction, a Discount rate is charged. A discount rate is a portion of the transaction that is taken by the credit card processor as their credit card processing fees.
The credit card processing fees are normally upfront and very transparent on your monthly merchant statement.
What may not be so transparent, is that your processor is also being charged a fee by VISA or MasterCard. This fee is called the Interchange rate.
Below are the Interchange Rates and how they vary based on how the transaction happens.