Interchange Fees

Mastercard Commercial Interchange – Data Rate 1 and 2

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Mastercard uses many different interchange categories to determine the rates and fees your business pays for accepting credit cards. There isn’t just a single “Mastercard business” interchange rate. There are 5 different business card rates, depending on the “program level.” From there, most businesses will see rates further broken into one of two categories: Data …

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Interchange Fees

Visa Business Product 1 and Business Product 2 Interchange

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Business Product 1 applies to card-not-present transactions and Business Product 2 applies to card-present transactions.There are additional “sub-categories,” determined by spend tiers 1-5. Note that Visa uses Roman numerals, so the spend tiers are I, II, III, IV, and V. Spend tiers relate to the cardholder spending requirements and range from $0 in Tier I  …

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Interchange Fees

Visa Restaurant 1 and Restaurant 2 Interchange

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The two categories essentially replaced Visa’s prior CPS interchange program, and apply to different consumer credit transactions. The broadest difference is that Restaurant 1 applies to card-not-present transactions and Restaurant 2 applies to card-present transactions. There are additional “sub-categories” with Restaurant 1 and 2, but unlike with some other categories, there are actually only two …

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Interchange Fees

Visa Product 1 and 2 Interchange

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Product 1 and Product 2 are common interchange categories for a variety of business types. The categories essentially replaced Visa’s prior CPS interchange program, and apply to different consumer credit transactions. The broadest difference is that Product 1 applies to card-not-present transactions and Product 2 applies to card-present transactions. However, within those two categories are …

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Interchange Fees

Visa Non-Qualified Interchange

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Non-qualified charges indicate expensive transaction costs for you. There are two main reasons for them: your processor charged you a non-qualified rate, or your transactions “downgraded” to Visa’s non-qualified interchange category. It’s easy to confuse Visa’s non-qualified interchange with the non-qualified rates from your processor. To understand the difference, let’s take a look at both …

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