When you accept credit or debit cards, processing fees apply. A large portion of these fees are called interchange fees.
This article explains what interchange is, how it works, and where you can find published rates.
What Is Interchange?
Interchange is a fee set by the card networks (Visa, Mastercard, American Express, Discover) and paid to the card-issuing bank (the customerās bank).
It is not set by Valpay.
Each time a customer makes a card payment:
The card network processes the transaction.
The issuing bank receives an interchange fee.
The remaining portion of your processing fee covers network fees and payment processor services.
Who Sets Interchange Rates?
Interchange rates are established and published by the card networks.
They are:
Determined by Visa, Mastercard, American Express, and Discover
The same across all payment processors
Updated periodically (typically twice per year for Visa and Mastercard)
Valpay does not control or modify interchange rates.
What Affects Interchange Rates?
Interchange is not a single flat rate. It varies depending on several factors, including:
Card Type
Standard consumer cards
Rewards cards
Business or corporate cards
Premium or high-reward cards
Transaction Type
In-person (card-present)
Online (card-not-present)
Manually keyed transactions
Industry / Merchant Category
Certain industries qualify for specific interchange categories.
Security & Data
Providing additional data (such as AVS, CVV, or Level 2/Level 3 data for commercial cards) may qualify for better interchange categories.
Because of these variables, processing costs can vary from one transaction to another.
Where Can I See Interchange Rates?
Interchange rates are publicly available on the card network websites:
Visa Interchange Rates ā Published on visa.com
Mastercard Interchange Rates ā Published on mastercard.com
American Express ā Published on americanexpress.com
Discover ā Published on discover.com
You can search for āInterchange Ratesā on each networkās website for the most current published tables.
Please note: Interchange tables can be complex and contain many rate categories.
Why Processing Fees Vary From Transaction to Transaction
You may notice that your effective processing rate changes month to month. This is normal and can occur due to:
Different card types being used
Increase in rewards or corporate cards
More online vs. in-person transactions
Changes in customer payment behavior
Since interchange is set by the card networks, these changes are driven by transaction mix rather than adjustments made by Valpay.
Key Takeaways
Interchange is set by the card networks, not Valpay.
It is paid to the cardholderās issuing bank.
Rates vary depending on card type, transaction method, and industry.
Interchange rates are publicly available on the card network websites.
Your total processing cost includes interchange plus network and processor fees.
If you would like help understanding your processing statement or effective rate, please contact Valpay Support and we will be happy to review it with you.