When referring to the percentage merchants pay for accepting credit card transactions, Visa and Mastercard use the phrase “Interchange Rate”. American Express uses the phrase “Discount Rate” when referring to their processing fees, which can be misleading. Instead of giving merchants a discount for particular purchases, they are actually taking a larger percentage of the purchase than most credit card processors. As American Express works as a closed loop system (dispersing their own cards, authorizing and settling payments), they set their fees at high price rates for whatever they can get away with in our current economy.
Visa has Implemented a Controversial Interchange Fee Increase as of April 2021
Business interchange fees have increased by as much as 20%. After a controversial fee update was rolled out to merchants nationwide, many businesses scramble to minimize these additional costs. Background: If your business accepts credit …