Interchange Fee

A rate established by the card associations (Visa and MasterCard) that is paid by the acquirer to the issuer as compensation for fees associated with processing a credit card transaction.

The percentage rate of a sale that an acquiring bank must pay to the issuing bank as payment for accepting credit card and other electronic bank card transactions.

Visa and MasterCard have the ability to change interchange rates twice a year in the months of April and October so it's important to reference the source when researching interchange fees. Visa and MasterCard each post their interchange fee schedules on their respective web sites - the links to which are listed below.

The following section of the Merchant Account Information Guide explains interchange fees in detail.

Visa's Interchange Fee Schedule

MasterCard's Interchange Fee Schedule