Overview#Interchange Fee is charged to a merchant because the Card Issuer and Acquirer assume all, well most of, the risks on every Payment Card transaction (late or no payment, fraud etc…), yet fund the merchant within 48 hours of the sale.
A discount rate is largely comprised of the interchange and assessments. The discount fee that a merchant is charged depends of several factors including:
- Volume of Business
- Type of Business
- Type of Sale - Retail or Internet
- Risk presented
- Card Not Present
- Merchant Credit