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The amount shown under Rate is multiplied by the amount of the transaction the amount shown under Per Item is charged per transaction. Both amounts are Non-Qualified Fee Schedule Interchange Plus Merchants Refer to the Interchange Qualification Matrix for Clearing Requirements complete list call the number on your merchant statement. Interchange Qualification Matrix Includes Visa and MasterCard PIN Debit Interchange and Switch Fees VISA AND MAST.

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Average Interchange Rates Visa: 1.4% - 2.5% Mastercard: 1.5% - 2.6% Discover: 1.55% - 2.5% American Express: 2.3% - 3.5%

The interchange rate is calculated based on a number of factors, including authorization costs, losses due to fraud and credit, and the average bank cost of funds.

A merchant discount rate is a fee charged to merchants by acquiring banks, including several fees related to processing card payments. On the other hand, interchange fees are fees paid to the issuing bank by the acquirer as compensation for taking the risk of issuing cards.

Definition: Interchange fees are transaction fees that the merchant's bank account must pay whenever a customer uses a credit/debit card to make a purchase from their store. The fees are paid to the card-issuing bank to cover handling costs, fraud and bad debt costs and the risk involved in approving the payment.

Interchange fees are incurred on debit card and credit card transactions. They are paid from the merchant's bank (the acquiring bank) to the customer's bank (the issuing bank). Interchange fees are set by the card network. Interchange fees are typically calculated as a percentage of the total transaction amount.

These fees are set by the credit card networks, and are the largest component of the various fees that most merchants pay for the privilege of accepting credit cards, representing 70% to 90% of these fees by some estimates, although larger merchants typically pay less as a percentage.

Based on the costs of moving money, the time value of money in terms of current interest rates, and the relative risk involved, credit card companies set and regularly adjust their interchange rates. Visa and Mastercard, for example, change rates twice a year, in April and October.

A small portion of the interchange fee goes toward the credit card processing service, and the rest goes to the bank or credit card company associated with the card that was used to make the purchase.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232