Concept Guide · Payments
💳 Interchange Fees
Definition
The fee paid to the card-issuing bank on every transaction — set by Visa/Mastercard, non-negotiable, typically 1.5–2.1%.
Why operators care
This is a foundational concept that directly affects your costs, cash flow, or risk exposure. Understanding it prevents expensive surprises.
How it works in practice
The mechanics are simpler than they look. Once you understand the core flow, most related problems become obvious.
What operators get wrong
The most common misunderstanding is treating this as a "set and forget" system. It requires periodic review as your volume and mix change.
When to act
If this is costing you money you didn't know about, or creating friction for customers, act now. Otherwise, build it into your quarterly review.
📖 Related Concepts & Guides
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Text PJ — real human, San Diego. Straight answer, no pitch.