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


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.