Interchange Optimization

Interchange optimization is one of the most overlooked techniques to help you reduce your merchant account fees. If you want the lowest rates for your merchant account then it pays to know how credit card interchange works , and what you can do to leverage it.

What Are Interchange Rates?

In general, interchange rates are fees that merchants pay to card issuers like Visa, Mastercard, and American Express for the ability to accept their type of card. These fees are determined by a variety of factors, including the type of card used, the type of transaction (e.g., swiped, keyed-in, online, etc.), and what industry you’re in. Now, let’s take a look at how these rates can be reduced by understanding your payment transactions.

What Is Interchange Optimization?

Interchange optimization is the process of strategically selecting the type of interchange rate that will apply to a particular transaction. By choosing the right interchange rate for a transaction, merchants can potentially lower their overall payment processing fees.