What is Interchange?

Introduction

An interchange fee is a small charge, usually a percentage of the transaction amount, that the merchant's bank (the acquiring bank) pays to the customer's bank (the issuing bank) for processing a credit or debit card transaction. 

It's a component of the overall cost merchants pay to accept card payments, and it helps cover the costs associated with processing the transaction, including fraud prevention and rewards programs.

Do card schemes charge more for international transactions?

Yes, card schemes generally charge higher fees for international transactions compared to domestic ones. This is because international transactions involve more complexity, including currency conversion and potential cross-border processing costs.