Interchange fees are the funds charged by international payment systems (Visa / Mastercard / AMEX) for the provision of their services.
In the process of processing payments, interbank fees account for most of the transaction fees. These fees may differ for each type of credit institution.
Efforts have been made in recent years to standardize interbank fees with stricter rules and overall transparency improvements.
How is the interchange commission formed?
- Card type. When processing credit cards, fees will be higher than for debit cards.
- Business type and size. High-risk businesses pay higher fees. In addition, larger businesses have a lower rate. For the sake of a large client, processing companies are ready to provide them with some benefits.
- Transaction type. CNP (card-not-present), transactions without the presence of a card are considered more risky and have a higher commission. Phone Confirmation (MOTO) transactions are also considered to be more risky.
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