The short answer
Interchange is the portion of each transaction paid to the bank that issued your customer's card. Rates are published by Visa, Mastercard, Discover and Interac twice a year and are identical for every processor. Nobody discounts interchange — providers compete on the markup above it and on how well your transactions qualify.
What moves your interchange
Card type (debit, standard credit, rewards, business, corporate), channel (tapped, dipped, keyed, online), your merchant category code, and the data passed with the transaction. A tapped debit card and a keyed corporate card can differ by more than two percentage points.
Why this matters when comparing quotes
If two providers quote you different 'interchange', one of them is padding it. The cost is identical. Compare the markup and the fee schedule, because that is the only part that is actually theirs.
Key takeaways
- Interchange goes to the card-issuing bank, not the processor
- Rates are public and identical across providers
- Compete providers on markup and qualification, not on interchange
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