Interchange is a fee that businesses pay to the credit card networks for each credit or debit card transaction. The interchange fee is set by credit card networks, such as Visa and Mastercard, and it is based on a variety of factors, such as the type of card, the amount of the transaction, and the merchant’s category.
How The Payment Exchange Helps Businesses
The experts at The Payment Exchange can help businesses understand interchange and find ways to reduce their interchange fees. They can also help businesses choose the right merchant account and payment gateway to maximize their savings.
Here are some of the ways that The Payment Exchange can help businesses with interchange:
- Negotiate lower interchange rates: The Payment Exchange has a long history of negotiating lower interchange rates for businesses. They have relationships with a variety of acquiring banks, and they can use their expertise to get the best possible rates for their clients.
- Advise on merchant category codes: The merchant category code (MCC) is a four-digit code that is used to classify businesses for the purpose of interchange. The MCC can have a significant impact on the interchange rate, so it is important to choose the right MCC. The Payment Exchange can help businesses choose the right MCC to minimize their interchange fees.
- Offer interchange optimization services: Interchange optimization is the process of reducing interchange fees by optimizing the way that businesses accept credit and debit card payments. The Payment Exchange offers a variety of interchange optimization services, such as level 3 data processing and batch settlement.
- Provide educational resources: The Payment Exchange offers a variety of educational resources on interchange, merchant accounts, and payment processing. These resources can help businesses understand interchange and make informed decisions about their payment processing.
If you are a business owner who is looking to reduce your interchange fees, contact The Payment Exchange today. They can help you understand interchange and find ways to save money on your merchant account fees.
Here are some additional tips for businesses to reduce their interchange fees:
- Choose the right merchant account: Not all merchant accounts are created equal. Some merchant accounts have lower interchange rates than others. Do your research and compare rates before choosing a merchant account.
- Use a payment gateway that offers level 3 data processing: Level 3 data processing is the process of sending additional merchant data to the credit card networks. This data can help the credit card networks assess the risk of a transaction more accurately, which can lead to lower interchange rates.
- Consider batch settlement: Batch settlement is the process of processing credit and debit card transactions in batches. This can help businesses save money on interchange fees, as they will only pay interchange fees on the transactions that are actually processed.
- Avoid high-risk categories: Some merchant categories are considered to be high-risk, such as businesses that sell online or businesses that sell certain types of products. These businesses typically must pay higher interchange rates.
By following these tips, businesses can reduce their interchange fees and save money on their merchant account costs. For more on how The Payment Exchange can help business owners in Tennessee simply contact us toll-free at 877-635-8803 or locally at 615-567-5990 or drop us a line any time today.