Interchange Fee Summary
- Lots of cardholders with spending power
- Merchants are consumers in a 4-party payment system
- The largest component of merchant discount pricing is Interchange fees paid to the card issuing bank, and Dues & Assessments paid to MC/Visa
- Interchange fees are known in advance and are the same for all participants
- Interchange fees (through network effects) are set to maximize network volume in a “two-sided” market of cardholders and merchants
- Market trends points to more complexities in how Interchange fees will impact merchants
- Your price structure is more important than a rate quote
- Moving to an Interchange fee pricing plan, coupled with a focus on your rate structure and managing Interchange qualification will lower your bottom line costs










