How interchange is calculated ?

Interchange rates vary depending on several factors, including the type of card (consumer vs. business), purchase amount, online vs. offline purchase, merchant category, network, merchant-specific arrangements, and issuing bank size. The exact calculation involves a percentage of the purchase amount plus a small fixed amount.

Your Interchange Revenue is the calculation that equals (Client Interchange Share) x (Gross Interchange - Network Fees + Processor Fees).

What factors influence interchange rates?

• Card type: Business cards generally have higher interchange rates than consumer cards.
• Purchase amount: Smaller purchases typically result in a higher interchange rate as a percentage of the total amount.
• Online vs. in-person: Online transactions generally have higher interchange rates due to increased fraud risk.
• Merchant category: Some merchant categories have lower interchange rates.
• Network: Different card networks (e.g., Visa, Mastercard) have varying interchange rates.
• Merchant-specific arrangements: Large retailers may negotiate lower interchange rates.
• Issuing bank size: Smaller banks generally receive higher interchange rates for debit card transactions than large banks.