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The biggest piece of the pie will be eaten up by interchange fees, which are collected mainly by credit card issuers.

These fees are often presented as some percentage plus an additional fixed amount - usually no greater than $0.25. Interchange fees vary widely based on a number of factors such as:

MasterCard, Visa, American Express, and Discover are the four major credit card networks, and they all charge slightly different interchange rates. As noted previously, American Express tends to be the most expensive of the group for several reasons, which we discuss below. There is also price variation within the individual networks. For example, a World Elite MasterCard will have different interchange fees than a World MasterCard would. 

Card Type 
Fees are also impacted by whether the card being used in the transaction is a debit or credit card. Furthermore, the type of credit card is also important. Business credit cards tend to be the most expensive to process, followed by rewards credit cards and regular credit cards closing the group off.

How the Payment is Processed
Whether you, the merchant, swipe the credit card through a reader or punch in its number directly into the system will also impact the fees you are charged for a particular transaction. Credit card networks will also discriminate between online and mobile payments, and card-not-present transactions. In general, we've observed fees on swiped transactions to be lowest.

Merchant Category Code (MCC)
The way in which you categorize your business and each sale you make will also have an effect on the interchange you will pay per transaction. While this affects the interchange rate, it rarely does so by more than few tenths of a percent. Note that trying to classify your restaurant as a ground transportation service to get lower rates is not a good idea. Card issuers are still examining data that is being fed to them in each transaction. Any attempted manipulation of transaction data is sure to be discovered and punished.

MasterCard and Visa make their interchange rate classifications publicly available, so that merchants can see what to expect, depending on the type of business they conduct. Unfortunately, Discover makes the process of acquiring data a bit more difficult. You can access a list of Discover interchange fees only after having partnered with an MSP, who must provide you with a verification code. Alternatively, if you simply want to get an idea of Discover’s interchange rates, this link has some old data from 2012.

What Could You Do With More Money In Your Pocket?

Enter your estimated monthly credit card processing volume and see how much a partnership with Merchant Fee Removal can save you monthly, annually, and over the life of your contract.
Calculate Your Savings Based On Volume
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Let us help you take the next step toward keeping more of your hard-earned money. 
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