Interchange is the transfer rate exchanged between the merchant’s and cardholder’s financial institution each time a payment card is used.
Its primary role is to create the right balance of incentives between cardholders’ financial institutions – which promote and issue payment cards to consumers – and merchants’ financial institutions – which enroll and process transactions for merchants.
A significant amount of the fees we charge you for processing your payment card transactions represent fees we must pay to the issuing banks (or that are otherwise charged to us by Visa, MasterCard, Discover, and PIN-based Debit Networks, the “card associations”).
This amount, called “Interchange” varies based upon a complex series of interchange levels that may apply to the transaction depending upon a number of factors – such as the type of card presented, specific information contained in the transaction, how and when the transaction is processed, your industry, and other factors. In addition, the card associations charge other fees that are not considered interchange, such as network access fees.
A portion of the rate we charge you will depend on the type of transaction and the interchange level at which the transaction is processed.
In order to qualify for any specific interchange level, you must satisfy certain qualification criteria established by the card associations.
In general, the card associations release modifications to interchange rates, qualification criteria, or introduce new fee programs bi-annually; however, these times may vary.
To view changes made by the card associations for a specific time, please download the corresponding document listed below.
In the event of any ambiguity or conflict, the interchange requirements established by the card associations will determine the interchange level at which your transactions qualify.