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What are interchange fees?

Interchange is the fee paid to the cardholder's issuing bank on every card transaction. It's set by the card networks and forms the largest part of most processing costs.

How interchange works

On each sale, a portion of the fee goes to the issuer as interchange, with smaller amounts to the network and the acquirer/PSP. Rates vary by card type, region, channel and MCC.

What drives your rate

Premium and commercial cards, cross-border transactions and card-not-present payments typically carry higher interchange than standard domestic debit.

Interchange and your total cost

Interchange is a pass-through cost; your provider's margin sits on top. Understanding the split helps you compare quotes fairly across providers.

Related
FAQ
Can I avoid interchange fees?

No - interchange is set by the networks and paid to issuers on card transactions. You can reduce total cost by optimising card mix and using lower-cost alternative payment methods where suitable.

Why is my effective rate higher than the headline rate?

Headline rates often quote the cheapest card type. Premium, commercial and cross-border cards carry higher interchange, raising your blended effective rate.

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