What are the different types of interchange fees?

Interchange fees are fees charged to a merchant every time a customer uses a credit card to make a purchase. In Washington, the law allows for two different types of interchange fees; fixed fees and variable fees. Fixed fees are set by the credit card companies and are normally applied to all credit card purchases, regardless of the dollar amount. These fees are the same for any credit card company and are typically a percentage of the total transaction amount, from 0.10% to 1.00%. Variable fees are set by the individual banks and are based on a number of factors, including the type of credit card used, the consumers credit score, the purchase amount, and the merchant’s industry. These fees can range from 0.05% to 3.00% and can vary greatly from one credit card to the next. For the most part, these fees are determined by the credit card company or the specific bank. Credit card companies usually take into account the type of business the merchant is in, while banks look at factors such as the consumer’s credit score and the purchase amount when determining the fees. In Washington, it is important to understand the costs associated with credit card processing. Knowing the different types of interchange fees can help merchants manage their costs and make sure they are getting the best deal on credit card processing.

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What are the different types of interchange fees?

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