The more you engage in the electronic payment business the more educational the experience becomes.

You will learn that interchange makes up for a great deal of the entire process.

• Funds travel from merchant to the bank, from the bank to the payment brand (such as Visa and Master Card) and from the payment brand to the bank that issued the card initially.
• For every transaction that is processed a fee is charged. Payment processors are responsible for paying this fee to the issuing bank. Fraud mitigation and lines of credit that issuing banks offer are covered by this fee.

Payment brands determine the amount for the interchange fees. The rate you pay is determined by different factors.

• The type of card whether it be credit, debit or a rewards card is one determining factor.
• The type of transaction is another determining factor. These types of transactions include when the card is present, a phone order and an online order.
• Average transaction volume is an additional determining factor.
• The amount of risk per transaction and the rate you pay has a strong correlation. Low risk transactions include payments conducted with a card that is present. High risk transactions include payments conducted with a card that is not present.

Payment brands may also charge a separate assessment fee. This covers operating costs of network management.

There is no set rate applied to every transaction, and rates are adjusted annually by the payment brand.

Transnet Enterprises customizes payment processing products and services to meet the specific requirements of
your business from start-up to success, regardless of industry or size. We want to help you reach your business
goals. Please let us know how we can help you by email us below or calling us at 888-888-6888 for sales inquiries.
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