Credit Card Interchange Fees: Definition, Rates, and How to Reduce Them

Interchange fees are transaction charges paid by acquiring banks to issuing banks when card payments are processed, typically ranging from 1.5% to 3% of the transaction plus fixed fees, making them a major component of payment processing costs. The article covers fee structures, optimization strategies including ACH routing and proper transaction flagging, and regulatory considerations around debit card caps under the Durbin Amendment.