Interchange Rate

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Dictionary Says

Definition of 'Interchange Rate'

A fee charged by banks that covers the cost of handling and credit risk inherent in a bank credit or debit card transaction. Interchange fees are usually paid to the bank funding a transaction and thus bearing the risk. The fee itself is calculated based on authorization costs, losses due to fraud and credit and the average bank cost of funds. The interchange rate is revised on a regular basis.
Investopedia Says

Investopedia explains 'Interchange Rate'

For credit card transactions, this fee is also called the issuer's reimbursement fee. In this case, the fee is usually paid by the merchant bank accepting the draft to the bank that issued the card. This bank then in turn passes the fee on to the cardholder.

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'Interchange Rate'

  • The Truth About Credit Card Swipe Fees - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0711/The-Truth-About-Credit-Card-Swipe-Fees.aspx
    ... to allow the Federal Reserve to set interchange rate fees and allow the merchant
    to set a minimum amount that a consumer must spend in order to use a card. ...

  • Bank Revenues Threatened By New Interchange Fees

    http://stocks.investopedia.com/stock-analysis/2011/Bank-Revenues-Threatened-By-New-Interchange-Fees-RF-HBAN-PNC-WFC0426.aspx
    ... banking industry is gearing up in opposition to proposed rules from the Federal
    Reserve that would limit debit card interchange fees received ... Rate this Article ...

  • Feds Nickel And Dime The System

    http://stocks.investopedia.com/stock-analysis/2010/Feds-Nickel-And-Dime-The-System-V-MA-WFC-BAC-TCB-AXP-USB1221.aspx
    ... These interchange fees, for instance, are meaningful sources of profit to large
    mega-banks like Wells Fargo (NYSE:WFC) and Bank of America ... Rate this Article ...

  • The Banking System: Commercial Banking - How Banks Make Money ...

    http://www.investopedia.com/university/banking-system/banking-system3.asp
    ... That said, credit card lending delivers lucrative fees for banks: Interchange fees
    charged to merchants for accepting the card and ... Rate data provided by. ...

  • Green Dot Looking Black And Blue

    http://stocks.investopedia.com/stock-analysis/2011/Green-Dot-Looking-Black-And-Blue-GDOT-NTSP-WU-WMT-MA0808.aspx
    ... company will be largely exempt from new rules regarding interchange fees and ... Filed
    Under: Stock Analysis,Stocks. Rate this Article: Your Rating: Overall Rating ...

  • US Bancorp Standing Out And Outstanding

    http://stocks.investopedia.com/stock-analysis/2011/U.S.-Bancorp-Standing-Out-And-Outstanding-USB-WFC-TCB-C-BAC-BK-STT0725.aspx
    ... True, changes to regulations concerning card interchange fees and bank service fees ...
    Filed Under: Stock Analysis,Stocks. Rate this Article: Your Rating: Overall ...

  • Paradigm Shift For Plastic?

    http://stocks.investopedia.com/stock-analysis/2010/Paradigm-Shift-For-Plastic-V-MA-AXP-DFS-COF0914.aspx
    ... industry feeling that, as the premium brand for card interchange, there will be ... Filed
    Under: Credit,Credit Cards. Rate this Article: Your Rating: Overall Rating ...

  • A Tale Of 3 Banks

    http://stocks.investopedia.com/stock-analysis/2010/A-Tale-Of-3-Banks-USB-MTB-WFC-STD-AIB0727.aspx
    ... reduce) the fees that banks can garner from card interchange fees, overdraft ... Filed
    Under: Stock Analysis,Stocks. Rate this Article: Your Rating: Overall Rating ...

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