Payment Processing

Understanding Interchange

Interchange is the biggest piece of card acceptance cost, and the one part no processor controls. Here's how it gets set.

2 min readUpdated 2026Payment Processing

Interchange is the part of a card sale that goes to the bank that issued the customer's card. The card networks publish these rates, and your processor can't negotiate them.

What sets the rate

  • Card type: debit, standard credit, rewards, business and corporate cards all price differently
  • How the card is used: card-present, keyed in, online and mobile all differ
  • Your business type: different merchant category codes have different rate schedules
  • Data quality: missing or incomplete transaction data can bump you to a higher rate

What you can control

You can't change the published interchange rate, but good habits affect what you actually pay: the right business category code, the right acceptance method, complete transaction data, timely settlement, and avoiding rate bumps.

Educational content

This article is for education only and is not legal, tax, or accounting advice. Program availability, disclosure rules, and allowed structures vary by state, card network rules, processor requirements, and how your business is set up. Talk to your own advisors before you adopt a program.

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