Current US Interchange Rates for 2025

In the United States the average interchange fee that merchants pay is roughly 1.81%. For businesses that are accepting payments in-person at a physical location, the average interchange rate is around 1.71%. For businesses that are accepting payments online, the average interchange rate is 1.91%.

For merchants accepting payments online, the reason for the higher interchange rate is that there is an increased risk of fraud when compared to accepting cards in person.

Interchange fees are paid directly to the card-issuing bank to cover handling costs, fraud and bad debt costs, and for the risk involved in approving the payment. Interchange fees are collected by the merchant’s bank account, and these fees are paid to the card-issuing bank.

No, you cannot under any circumstance negotiate interchange rates. It does not matter which credit card processor you work with, no processor can offer you a lower interchange rate than another. Your business may qualify for Level 3 interchange rates which lower the cost overall, however, you still cannot negotiate the specific rate.

Interchange rates are determined by credit card companies. These companies are Visa, Mastercard, Discover, and American Express. Historically, Visa and Mastercard set their rates twice per year in April and again in October. Each credit company is in charge of setting interchange rates and some may set their rates once per year.

The term interchange rate refers to the wholesale cost that Visa, Mastercard, Discover and American Express charge to accept cards. Merchants must pay these fees for every credit and debit card transaction that they accept.

Calculating interchange rates is determined by the transaction scenario (card present or card not present), and card type. They are calculated as a percentage plus an additional fixed amount per transaction. (For example: 1.430% + 10¢). These rates are set by the credit card networks: Visa, Mastercard, Discover and American Express.

Typically, earnings by card issuers on interchange fees range from 1% to 3%, plus a flat fee, per transaction. Card issuers make all of the earnings from interchange fees.

An example of an interchange rate is 1.51% + $0.10 per transaction. This is the interchange rate for a retail Visa card present transaction. Interchange rates depend on the industry, transaction scenario (card present or card not present), and card type.

Interchange fees are charged by credit card companies and are paid to the issuing bank. Those fees are collected by the merchant’s bank account and are paid to the card-issuing bank. A merchant discount rate is the fee charged to merchants for payment processing services for debit and credit transactions. The merchant agrees to this rate before accepting payments.