Card-issuing banks, payment processors, credit card payment companies like MasterCard and Visa, payment gateways, and your own merchant bank will all charge a percentage-based fee on every transaction in your store. These charges usually show up on your payment processing bill as a single, bundled amount.

Mastercard does not earn revenue from interchange

Where not fully regulated by the government, Mastercard sets interchange rates based on the value delivered by the issuing bank and the benefits of accepting electronic payments. Setting interchange at the right level is important because if interchange rates are set too high, merchants may choose not to accept cards; and, if interchange is set too low, issuing banks have no incentive to cover the risks of issuing payment cards.

Setting interchange rates at the appropriate level also helps ensure that both issuers and acquirers deliver services that optimize the effectiveness of the payments system and spur development of innovative payment solutions. 

Flexible interchange rates make it possible for electronic payments to deliver maximium value at the lowest cost for both merchants and consumers. Interchange also promotes credit availability for small businesses and is a key driver for financial inclusion.  Learn More about Mastercard Interchange Here

Visa uses interchange reimbursement fees as transfer fees between acquiring banks and issuing banks for each Visa card transaction. Visa uses these fees to balance and grow the payment system for the benefit of all participants.

Merchants do not pay interchange reimbursement fees—merchants negotiate and pay a “merchant discount” to their financial institution that is typically calculated as a percentage per transaction. Merchants can receive a variety of processing services from financial institutions that may be included in their merchant discount rate. Want to Learn More. Visit the Visa Interchange Rate Page Here