Interchange Fee Summary
  1. Lots of cardholders with spending power
  2. Merchants are consumers in a 4-party payment system
  3. The largest component of merchant discount pricing is Interchange fees paid to the card issuing bank, and Dues & Assessments paid to MC/Visa
  4. Interchange fees are known in advance and are the same for all participants
  5. Interchange fees (through network effects) are set to maximize network volume in a “two-sided” market of cardholders and merchants
  6. Market trends points to more complexities in how Interchange fees will impact merchants
  7. Your price structure is more important than a rate quote
  8. Moving to an Interchange fee pricing plan, coupled with a focus on your rate structure and managing Interchange qualification will lower your bottom line costs