Interchange Fees: Everything You Need to Know

• Interchange fees are used to keep the payment systems functioning as securely as possible.

Interchange fees operate basically as transaction fees which the merchant’s bank account is required to pay whenever on of their customers makes a purchase from their store and pays it via credit or debit card.

Accordingly, interchange fees can add up rather quickly, so if you’re running a business, it is important to understand how they work and how to get the best out of your transactions.

As such, if you’re looking for a clever idea to keep interchange fees from chipping away at your margins, read on because we’ve got seven!

Why do interchange fees exist?

The reason for paying them is simple: the card-issuing bank is working towards covering handling costs, as well as fraud and bad debt costs. Moreover, it handles the added risk which inherent to having to approve the payment, especially when it is a?[?Read more here?]