Understanding Interchange Fees Could Save You Big Time!

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Many business owners do not understand how they are being overcharged for accepting credit and debit card payments. Each swipe or transaction processed with a credit card means that the business owner will be charged a fee for that transaction. And some business owners are being drastically overcharged. We call this, Overpaying for Paying. It’s not fair for anyone and we are here to help build a better understanding.

How Interchange Fees Work:

In a credit card or debit card transaction, the card-issuing bank in a payment transaction deducts the interchange fee from the amount it pays the acquiring bank that handles a credit or debit card transaction for a merchant. Seem like a mouth full? To explain in simpler terms, when a consumer pays for something with a credit card, the interchange fee is the fee charged to move money from the cardholder’s bank to the merchant’s bank.

Why is this Important?


As a business owner, part of what your business is charged is based off of the interchange fee. Understanding how interchange works will allow you to better understand your current rates helping you to determine if your business is overpaying for paying.

What You Should Know:

A business cannot be priced less than Interchange. This is cost for everyone. Your business. Amazon.com. Target. Everyone! No matter what you may hear in a slick sales pitch, you cannot pay zero percent. There is a true cost to everyone involved in the payments landscape. For a list of Visa Interchange rates, please visit their website by clicking here.

What Matters to You:

The mark up on top of Interchange is what matters most. When agreeing to the terms of your merchant account, this is the part that is negotiable and where costs can be reduced when switching merchant providers.

What Can You Do?

If you are still having a tough time figuring out the charges on your merchant statement, do not fear, we can help. There is no cost or obligation. Send us an email and one of our specialists will take a look at your merchant statement to ensure your business is not overpaying for paying!

True Merchant’s ultra transparent pricing True Rate Program has been a very effective solution in saving businesses money off of their credit card processing fees. Simply put, merchants pay Cost Over Interchange with an easy to understand monthly service fee. An added benefit is this pricing method shows the business a price to compare versus other credit card processing companies.

Authored By:  Pat Hanavan