Interchange fee: definition, example, and why it matters

Interchange is the bulk (~80%) of the total processing fee you pay. Rates vary by card brand, type (rewards cards cost more), and whether the card was swiped or keyed.

• Short definition. The fee a card network charges your processor for moving the transaction.
• Category. Interchange fee is a payments term used by service businesses when billing customers.
• How Glo Invoice handles it. Glo Invoice builds interchange fee into the invoice itself, so you don't track it on paper or in a spreadsheet.

Frequently asked questions

What does interchange fee mean?

Interchange is the bulk (~80%) of the total processing fee you pay. Rates vary by card brand, type (rewards cards cost more), and whether the card was swiped or keyed.

Related terms

• Card payment — A payment made by credit or debit card, processed online or in person.
• Stripe — A payment processor that lets businesses accept cards, ACH, and wallets online.
• Convenience fee — A surcharge added when a customer chooses a more expensive payment method.