What is Interchange?

Interchange refers to the underlying cost of a credit card sale.

That is the simple definition.

Typically, when people say “interchange” (as in “interchange plus pricing”) they’re referring to a combination of different costs, namely:

  • Bank interchange
  • Card Brand Assessments
  • Network Fees

The bank that issues a credit card, depending on its type (rewards, debit, business, etc.) will have an interchange rate that goes with it. Each card may have several different costs associated with it based on the size of the transaction, method of acceptance, merchant MCC code, and settlement timing.

Here are some common Card Brand fees that get included when “interchange plus pricing” is used:

  • Assessments
  • Network Fees
  • Cross-Border or Foreign card fees
  • MasterCard Network Access and Brand Usage Fees (NABU)
  • Visa Acquirer Network Fee (FANF)
  • Visa Transaction Integrity Fee (TIF)
  • Visa Authorization Misuse Fee
  • Visa Zero Floor Limit Fee
  • America Express Card Not Present Surcharge