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Mastercard Interchange

Interchange is the fee set by Mastercard that acquiring banks (merchant banks) pay to issuing banks (cardholder banks) for each card-based transaction.

⚠️ Important: For a complete list of Interchange updates effective April 2026, including all category changes and rate adjustments, review the full spreadsheet: Interchange | April 2026 (Full List)

  • Goal: Maintain balance in the payment ecosystem by:

    • Incentivizing card issuance by banks

    • Supporting secure and reliable payment networks

    • Encouraging broad merchant acceptance

Merchants pay a Merchant Discount Rate (MDR) to their acquirer.
The MDR includes:

  1. Interchange (paid to the card issuer)

  2. Network Assessment Fees (paid to Mastercard)

  3. Acquirer’s Markup (processing fees)

What Affects Interchange Rates?

Mastercard interchange varies by several factors:

Factor Examples
Merchant Category Code (MCC) Grocery, restaurant, e-commerce, fuel, travel
Card Type Consumer credit, commercial credit, debit, prepaid
Transaction Method Card-present (chip, contactless) vs. card-not-present (online)
Transaction Data Level Enhanced data for B2B Level 2 / Level 3 transactions
Settlement Timing Same-day settlement vs. delayed settlement
Volume Tier Higher-volume merchants may qualify for reduced interchange tiers

Mastercard’s Published Rate Tables

Mastercard provides detailed U.S. interchange tables, available here:

Mastercard Merchant Interchange Rates – U.S.

Example (Illustrative Only – Not Current Rates)

Category Rate Per-Transaction Fee
Consumer Credit – Standard 1.58% $0.10
Debit – Regulated 0.05% $0.21
Small Ticket Credit 1.65% $0.04

Key rate categories include:

  • Credit Card Programs (Consumer, Commercial, Rewards, Premium)

  • Debit & Prepaid (Regulated vs. non-regulated)

  • Industry Programs (Supermarkets, Fuel, Small Ticket, Utilities)

 

Category Brand / Scope Name Meaning
Interchange Categories (Examples)
Interchange Visa CPS Retail / CPS Qualified Discounted rate for properly formatted, low-risk card-present transactions where required data is present.
Interchange Visa CPS Rewards (Rewards tiers) Consumer rewards cards; cost generally increases with richer card benefits.
Interchange Visa CPS Card-Not-Present Online/keyed transactions; typically higher due to fraud risk and data requirements.
Interchange Visa EIRF Fallback category when a transaction fails CPS qualification requirements.
Interchange Visa Standard / Non-Qualified Higher-cost fallback when key data is missing, risk factors are higher, or program rules aren't met.
Interchange Visa Business Level 1 / 2 / 3 Commercial card tiers; Level 2/3 require additional invoice/tax data and can qualify for improved rates.
Interchange Visa Debit Regulated / Unregulated Regulated debit (large issuers) is capped by law; unregulated debit can be higher.
Interchange Mastercard Merit (e.g., Merit I / Merit III) Card-present interchange categories for transactions meeting Mastercard formatting/data requirements.
Interchange Mastercard World / World Elite Premium consumer rewards card categories.
Interchange Mastercard Consumer eCommerce (Basic / Enhanced) Online Mastercard interchange; enhanced tiers may apply when additional security/authentication data is present.
Interchange Mastercard Business Level 1 / 2 / 3 Commercial tiers; Level 2/3 require invoice/tax data for improved qualification.
Interchange Mastercard Data Rate (I / II / III) Categories based on POS data transmitted; more qualifying data can lower the rate.
Interchange Discover Commercial Discover interchange for business/commercial card products.
Interchange Discover Card-Present / Card-Not-Present Discover categories split by transaction method.
Interchange Discover Recurring Payments Lower interchange for subscription or recurring billing when criteria are met.
Interchange (OptBlue) American Express OptBlue Industry Rates Wholesale rates set by Amex based on industry (MCC), ticket size, and how the card is accepted (CP vs CNP).
Interchange (OptBlue) American Express Premium / Rewards Tiers Higher-cost tiers for premium and rewards Amex cards.
Interchange (OptBlue) American Express CNP Rates Higher Amex rates for card-not-present transactions (online/keyed).
Association / Network Fees (Common Pass-Through Fees)
Association (Network) Visa Assessment Fee (US Acquirer Service Fee) Percentage-based fee assessed on settled Visa volume (commonly shown separately for credit vs debit/prepaid).
Association (Network) Visa APF (Acquirer Processing Fee) Per-transaction fee for processing through the Visa network.
Association (Network) Visa NABU (Network Acquirer Brand Usage) Per-authorization or per-transaction network usage fee (statement naming varies by processor).
Association (Network) Visa FANF (Fixed Acquirer Network Fee) Monthly network fee based on merchant type and processing profile (often billed in arrears).
Association (Network) Visa International Fees (ISA / IAF) Additional fees for cross-border / non-U.S. issuer transactions.
Association (Network) Visa Misuse of Authorization Fee Penalty when an authorization is not settled/reversed within required timeframes (common in tips, lodging, rentals).
Association (Network) Visa Zero Floor Limit Fee Penalty when a settlement occurs without a corresponding authorization on file (auth missing/invalid).
Association (Network) Visa Integrity / Data-Quality Fees (statement-dependent) Fees tied to network rule compliance, data quality, or transaction integrity (naming and applicability vary).
Association (Network) Mastercard Assessment / Volume Assessment Percentage-based fee assessed on settled Mastercard volume.
Association (Network) Mastercard NABU Fee Per-transaction network access and brand usage fee.
Association (Network) Mastercard Cross-Border Assessment Applied when issuer and merchant are in different countries/regions.
Association (Network) Mastercard Acquirer License Fee Periodic license fee charged for use of the Mastercard network (often itemized monthly/periodically).
Association (Network) Mastercard Digital Enablement Fee (DEF) Fee supporting tokenization / digital wallet services; may appear on statements for digital wallet transactions.
Association (Network) Discover Assessment Fee Percentage-based fee on Discover volume for network usage.
Association (Network) Discover DUF (Data Usage Fee) Per-transaction fee tied to data and network services (often shows as "DUF" on statements).
Association (Network) Discover International Service Fee Fee for transactions involving non-U.S. issued Discover cards (where applicable).
Association (Network) Discover Digital Investment / Network Program Fees (statement-dependent) Fees related to network investments, digital programs, or enhanced services (varies by program and statement labeling).
Association (Network) American Express (OptBlue) Network Assessment / Program Fees Fees supporting Amex network operations under OptBlue; may be shown as pass-through or bundled depending on provider.
Association (Network) American Express Cross-Border Fee Additional fee for international/non-domestic Amex transactions (where applicable).
Association (Network) All Networks AVS / Account Verification Fees (as applicable) Fees for Address Verification or account verification services, most common in keyed/CNP workflows.
Processor / MSP Fees (Common Merchant Statement Fees)
Processor Fees All / General Monthly / Statement Fee Account maintenance, reporting, and monthly statement generation.
Processor Fees All / General Payment Gateway Fee Secure online routing/processing through a gateway (common for e-commerce).
Processor Fees All / General Batch Fee / Daily Close Fee Charged each time the merchant settles (batches out).
Processor Fees All / General PCI Compliance / Non-Compliance PCI program/tooling fee, and potential penalty fee if required PCI steps are not completed.
Processor Fees All / General Chargeback / Representment Fees Fees assessed when a dispute is filed and/or when responding to (representing) a chargeback.
Processor Fees All / General Retrieval / Copy Request Fee Fee for providing transaction documentation when requested by issuer/network.
Processor Fees All / General Voice Authorization Fee Fee for manual phone-based authorizations.
Processor Fees All / General Monthly Minimum Fee Ensures processor revenue reaches a minimum threshold when volume is low.
Processor Fees All / General Tokenization / Vault / Card-on-File Fees Fees for storing credentials securely and supporting tokenized card-on-file transactions.
Processor Fees All / General Equipment Rental / Purchase Fees Terminal/PIN pad/POS costs (rental, lease, purchase, or support plan fees).
Processor Fees All / General Early Termination Fee (ETF) Charged if the merchant exits the processing agreement before the term ends (if applicable).
Summary (How Total Cost is Built)
Summary All / General Interchange Fees Set by issuing banks and networks; vary by card type, risk, and transaction method; typically the largest cost component.
Summary All / General Association (Network) Fees Charged by Visa/Mastercard/Discover/Amex to fund network operations, security, and infrastructure.
Summary All / General Processor Fees Charged by the merchant services provider to cover support, technology, risk controls, and operational services.
Note: Fee names, grouping, and line-item labels vary by processor statement. Card brands update programs and pass-through fees periodically, so use this table as a "most common" reference rather than an exhaustive list.