The interchange fee is a charge the acquirer pays to the consumer’s bank to process the consumer’s card payment. The business then covers the interchange fee as part of its card processing fees.
An interchange fee can be either a fixed amount or a percentage of the transaction. It also varies depending on whether you’re using a credit card or debit card and which country you’re in.
The interchange fee is charged by the cardholder’s bank and makes up the largest portion of card processing fees.
In Europe, the general interchange fee is 0.2-0.3% of the transaction, while in the U.S., it is 2%.
It is not possible to negotiate different rates for the interchange fee, and they are also adjusted regularly.
Each year, Visa and Mastercard announce new rates, typically in April and October. You can find the current rates for each region here:
Visa interchange rates: EU, USA, SG, AU, IN, UAE.
Mastercard interchange rates: EU, USA, AU.
American Express and Discover do not publish their rates online.
In 2015, the European Economic Area (EEA) introduced regulation of interchange fees, making the EEA one of the most cost-effective solutions worldwide.
The interchange fee is limited to payment cards in all EEA regions, making it easier to set up a business for international transactions.
Team pensopay.