Interchange is fundamental to open loop card system economics and a mystery to many, especially to merchants who must pay it but don’t perceive any benefit from it. It’s a non-optional component of what the merchant pays to accept cards. It’s one element of the merchant discount fee. Despite the stubborn fact of it, there are ways for some merchants to make sure they pay as low a rate as possible.
Join Angelo Grecco of CardConnect (now a part of First Data) and Glenbrook’s George Peabody for a conversation about interchange optimization, an approach that certain B2B merchants can employ to lower their acceptance costs.
In this episode of Payments on Fire we decode the payments industry terms:
- Merchant discount fee
- Interchange
- Bundled pricing
- Interchange plus pricing
- Level II/III data
If you’re new to payments or just need a refresher on interchange, take a listen!
