Who pays interchange fees? Aren’t these just hidden bank fees?

A:

No, interchange fees aren’t as obscure as many people think. Merchants pay fees and charges to their bank to facilitate credit and debit card transactions, and interchange fees are a key component of this. Interchange fees pays for credit and debit card fraud protection, interest-free periods, and credit card rewards programs. Merchants generally have a good level of information about these fees, and merchants all over the world are able to negotiate with their banking networks to lower their costs.