Acquiring
Interchange
The fee paid by the acquirer to the issuer on every card transaction, set by the schemes.
Interchange represents the cost of transfer between an acquirer and an issuer for each transaction, serving to balance costs and risks within the payment ecosystem. Regulated by card schemes like Visa and Mastercard, these fees vary according to factors such as the card brand, the country of issuance, and whether the transaction is processed via secure channels like 3D Secure. In the European Economic Area and the United Kingdom, interchange is generally capped at 0.2% for consumer debit and 0.3% for consumer credit cards, though commercial and international cards often incur significantly higher rates. The issuer receives this fee to cover processing costs, fraud prevention, and the financial risk of providing credit. Merchants usually see these costs reflected in their billing statements under either Interchange Plus (IC+) or blended pricing models, where the interchange component typically forms the largest portion of the total processing expense.
Frequently asked
How does transaction security affect interchange rates?
Transactions authenticated with 3D Secure often qualify for lower interchange tiers because they carry a reduced risk of fraud and provide a liability shift to the issuer. Conversely, non-authenticated or card-not-present transactions may be categorised under higher-cost categories by the schemes to compensate for increased risk.
Why is interchange higher for commercial cards than consumer cards?
Commercial or corporate cards are not subject to the same regulatory caps as consumer cards in many jurisdictions, allowing schemes to set higher rates. These higher fees are intended to fund the enhanced reporting, insurance, and rewards programmes that typically accompany business-to-business payment products.
Related terms
Fees charged by Visa and Mastercard (or another scheme) to acquirers and issuers on every transaction.
Transparent acquirer pricing model that passes interchange and scheme fees through at cost with a fixed processor markup on top.
A single flat rate (e.g. 2.9% + 30¢) charged on all card transactions regardless of underlying interchange.
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