Interchange Definition

Merchant Account Interchange Explained:

What is Interchange? An Interchange fee is a charge assessed on a card payment that serves as a card-issuing bank’s compensation for processing the transaction. Interchange is set by card networks like Visa, Discover, and MasterCard. These networks have different rates and collect different fees for different card types. For example, the fee charged for a debit card is different from a fee for a credit card, and a credit card that has a rewards program attached to it has a different fee than a credit card without rewards. All in all, there are well over 100 different rates that range from 0%-3% and are collectively known as “Interchange” fees. Merchant account providers usually mark their processing rates up above Interchange, either within a tiered pricing structure or through Interchange-plus pricing.

The average rate of Interchange is 0.3% for debit cards and 1.79% for credit cards. For each credit card sale, the Interchange fee is charged to the merchant then distributed to the bank that issued the customer’s card as well as a few other processing and routing networks. The only money Visa and MasterCard keep is the “Dues & Assessment” fee, which is usually fixed at 0.11% for all transactions.

Merchants should note that Interchange is not negotiable; the only portion of a processing fee that is negotiable is a provider’s markup above Interchange. A common promotional tactic among merchant services providers is to claim to offer a merchant “wholesale” or “interchange” rates, which is only partially true. These providers do offer Interchange rates, but almost always with an added markup on top of Interchange. If a processor allowed its merchants to process all transactions exactly at the Interchange rate, it would not ever make any money on the transaction.

Interchange Rate Video Explanation

Use of this video does not constitute an endorsement of any kind by CardPaymentOptions.com.

Typical Visa and MasterCard Interchange Rates

Card Type Interchange Rate
Visa Debit CPS       0.80% + $0.15
Visa Debit CPS (Regulated)       0.05% + $0.22
MasterCard Debit       1.05% + $0.22
MasterCard Debit (Regulated)       0.05% + $0.15
Visa Credit CPS Retail       1.51% + $0.10
MasterCard Credit Consumer       1.58% + $0.10

 

Visa Debit Rates

Debit Swipe Transaction Interchange Rate
Visa Debit CPS       0.80% + $0.15
Visa Debit CPS (Regulated)       0.05% + $0.22
Visa Debit Prepaid       1.15% + $0.15
Visa Debit Business       1.65% + $0.15
Visa Debit Business (Regulated)       0.05% + $0.22

 

Debit Keyed-In Transaction Interchange Rate
Visa Debit CPS       1.65% + $0.15
Visa Debit CPS (Regulated)       0.05% + $0.22
Visa Debit Pepaid       1.75% + $0.20
Visa Debit Business       2.45% + $0.10
Visa Debit Business (Regulated)       0.05% + $0.22

 

MasterCard Debit Rates

Debit Swipe Transaction Interchange Rate
MasterCard Debit CPS       1.05% + $0.15
MasterCard CPS (Regulated)       0.05% + $0.22
Visa Debit Prepaid       1.05% + $0.15

 

Debit Keyed-In Transaction Interchange Rate
MasterCard Debit CPS       1.60% + $0.15
MasterCard CPS (Regulated)       0.05% + $0.22
Visa Debit Prepaid       1.76% + $0.20

 

Visa Credit Rates

Credit Swipe Transaction Interchange Rate
Visa CPS Retail       1.51% + $0.10
Visa Rewards Traditional       1.65% + $0.10
Visa Rewards Signature       2.30% + $0.10
Visa Rewards Signature Preferred       2.10% + $0.10
Visa Corporate       2.10% + $0.10
Visa Business       2.20% + $0.10
Visa Purchasing       2.40% + $0.10

 

Credit Keyed-in Transaction Interchange Rate
Visa CPS Retail       1.80% + $0.15
Visa Rewards Traditional       1.95% + $0.22
Visa Rewards Signature       2.70% + $0.22
Visa Rewards Signature Preferred       2.30% + $0.15
Visa Corporate       2.95% + $0.10
Visa Business       2.95% + $0.10
Visa Purchasing       2.95% + $0.10

 

MasterCard Credit Rates

Credit Swipe Transaction Interchange Rate
MasterCard Consumer       1.65% + $0.10
MasterCard Enhanced       0.05% + $0.10
MasterCard World       1.75% + $0.10
MasterCard World Elite       2.45% + $0.10
MasterCard Corporate       0.05% + $0.10

 

Credit Keyed-In Transaction Interchange Rate
MasterCard Consumer       1.89% + $0.10
MasterCard Enhanced       2.04% + $0.10
MasterCard World       2.05% + $0.10
MasterCard World Elite       2.95% + $0.10
MasterCard Corporate       2.65% + $0.10

 

MasterCard Real Estate and Property Management Merchant Rates

Transaction Type Interchange Rate
MasterCard Consumer       1.10% + $0.00
MasterCard Enhanced       1.10% + $0.00
MasterCard World       1.10% + $0.00
MasterCard World Elite       1.10% + $0.00
MasterCard Corporate       2.65% + $0.10

 

Visa Charity Merchant Rates

Transaction Type Interchange Rate
Visa (Regulated)       0.50% + $0.22
Visa Charity Credit       1.35% + $0.05
Visa PayPal Donation       2.20% + $0.30

 

MasterCard Charity Merchant Rates

Transaction Type Interchange Rate
Visa Consumer       0.50% + $0.22
Mastercard Charity Debit       1.45% + $0.15
MasterCard Charity Credit       2.00% + $0.20
MasterCard PayPal Donation       2.20% + $0.30

 

Visa International Rates

International Transaction Interchange Rate
Visa International       1.10% + $0.00
Visa International Premium       1.10% + $0.00
Visa International Corporate       2.00% + $0.00
Visa International Keyed-In       1.60% + $0.00

 

MasterCard International Rates

International Transaction Interchange Rate
MasterCard International       1.10% + $0.00
MasterCard International Keyed-In       1.60% + $0.00

 

Visa Association Fees

Assocation Fee
Visa Card Brand
      0.13% + $0.00
Visa NAPF (Network Acquirer Processing Fee)
      $0.0195
Visa Clearing Access
      $0.0025
Visa International Cross-Border
      0.80% + $0.00
Visa International Acquirer Service Fee
      0.45% + $0.00
Visa FANF (Fixed Acquirer Network Fee)
Visa FANF – Swipe Per Location
      $2.00 Per Month
Visa FANF – Keyed-In (Volume $1,000 – $3,999)
      $7.00 Per Month
Visa FANF – Keyed-In (Volume $4,000 – $7,999)       $9.00 Per Month
Visa FANF – Keyed-In (Volume $8,000 – $39,999)
      $15.00 Per Month
Visa FANF – Keyed-In (Volume $40,000 – $199,999)       $45 Per Month


MasterCard Association Fees

Assocation Fee
MasterCard International       0.11% + $0.00
MasterCard International Keyed-In       0.13% + $0.00
MasterCard International       0.0045%
MasterCard International Keyed-In       $0.185
MasterCard International       $0.025
MasterCard International Keyed-In       $0.0025
MasterCard International       $0.01
MasterCard International Keyed-In       0.60% + $0.00
MasterCard International       0.85% + $0.00
MasterCard International Keyed-In       $7.50 Per Year
MasterCard International       $15.00 Per Year

Thank you for reading my review. I hope that it has helped you with your research.

Why I'm Qualified to Write About Credit Card Processing and Merchant Account Services

I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.

From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers on this website.

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