Current Interchange Rates in the USA (Updated 2025)
What Are Interchange Rates? A Guide for Businesses
The term “interchange rate” refers to the fees charged by banks and payment card networks (such as Visa, Mastercard, American Express, and Discover) for processing transactions when their credit or debit cards are used. These rates are critical for businesses using payment processing solutions, as they directly impact transaction costs. Interchange rates are updated biannually, typically in April and October, to reflect changes in market conditions, card usage, and regulatory factors.
This pricing model is known as interchange-plus pricing or cost-plus pricing. In this structure, “interchange” represents the base fee set by the card networks, while the “plus” is the additional fee charged by the processor. Interchange-plus pricing is widely regarded as the most transparent and cost-effective option for businesses, offering lower effective rates compared to alternative models like tiered pricing or flat-rate pricing, which can inflate costs significantly, especially for high-volume merchants.
Most Common Visa and MasterCard Interchange Rates 2025
Card Type
Current Interchange Rate
Visa Debit CPS Regulated
0.05% + $0.22
MasterCard Debit Regulated
0.05% + $0.22
Visa Debit CPS
0.80% + $0.15
MasterCard Debit
1.05% + $0.22
Visa Credit CPS Retail
1.51% + $0.10
MasterCard Credit Consumer (Merit III Core)
1.65% + $0.10
Why Interchange Rates Matter for Your Business
Understanding interchange rates is essential for optimizing payment processing costs. Here are a few key factors to consider:
Variability by Card Type: Interchange rates vary based on card type (e.g., rewards cards often have higher rates due to benefits for cardholders) and transaction method (in-person vs. online).
Impact on Profit Margins: Higher interchange fees, combined with processor markups, can erode profit margins, particularly for small businesses or those in high-risk industries like credit repair or cannabis payments.
Regulatory Influences: Changes in financial regulations or card network policies can affect interchange rates, making it crucial to stay informed about updates in April and October.
To rank higher for searches related to “lowering interchange rates” or “cost-effective payment processing,” consider these strategies:
Choose the Right Processor: Opt for providers offering competitive interchange-plus pricing, like AllayPay, which specializes in transparent fees for high-risk industries.
Encourage Lower-Cost Payment Methods: Promote PIN debit or ACH payments, which often have lower interchange rates than credit cards.
Stay Compliant: Ensure your business adheres to PCI DSS standards and card network rules to avoid penalty fees that increase effective rates.
Card Present Visa Debit Interchange
Visa Debit Interchange
Visa Interchange Rate
Supermarket DEB
0.00% + $0.30
VISA Utility DEB
0.00% + $0.65
Utility Business Prepaid
0.00% + $1.50
Utility Business Debit
0.00% + $1.50
Restaurant Debit Regulated
0.05% + $0.22
CPS/Supermarket Debit REG
0.05% + $0.22
Utility Debit REG
0.05% + $0.22
CPS/Auto Fuel Dispenser DB REG
0.05% + $0.22
CPS/E-Comm – Hotel Debit REG
0.05% + $0.22
Visa Debit CPS Regulated
0.05% + $0.22
Visa Debit Business Regulated
0.05% + $0.22
Visa Debit CPS
0.80% + $0.15
CPS/Restaurant Prepaid
1.15% + $0.15
CPS/Supermarket Prepaid
1.15% + $0.15
Restaurant DEB
1.19% + $0.10
Hotel Card Present DEB
1.19% + $0.10
Visa Debit Prepaid
1.51% + $0.15
Visa Debit Business
1.65% + $0.15
CPS/Hotel CNP Prepaid
1.75% + $0.20
Card Not Present MasterCard Debit Interchange
Keyed MC Debit Interchange
MasterCard Interchange Rate
MC Debit Regulated Keyed
0.05% + $0.22
MC Debit Keyed
1.60% + $0.15
MC Debit Keyed Prepaid
1.76% + $0.20
Card Present Visa Credit Interchange
Visa Retail Interchange
Visa Interchange Rate
Visa CPS Retail
1.51% + $0.10
Visa Rewards Traditional
1.65% + $0.10
Visa Rewards Signature Preferred
2.10% + $0.10
Visa Corporate
2.10% + $0.10
Visa Business
2.20% + $0.10
Visa Rewards Signature
2.30% + $0.10
Visa Purchasing
2.40% + $0.10
Card Present Restaurant Interchange
Visa Interchange Rate
Restaurant Consumer CP Min
0.00% + $0.04
Restaurant Sign Prefer CP Min
0.00% + $0.04
Restaurant Consumer CP
2.10% + $0.00
Restaurant Sign Prefer CP
2.60% + $0.00
Card Present Insurance Interchange
Visa Interchange Rate
Insurance Consumer
1.43% + $0.05
Insurance Consumer Rewards
1.43% + $0.05
Insurance Signature
1.43% + $0.05
Insurance Signature Prefer
2.25% + $0.10
Card Present Utility Interchange
Visa Interchange Rate
Visa Utility
0.0% + $0.75
Visa Utility – Business Card
0.0% + $1.50
Card Present Education Interchange
Visa Interchange Rate
Education Consumer
1.43% + $0.05
Education Consumer Rewards
1.43% + $0.05
Education Signature
1.43% + $0.05
Education Signature Preferred
2.15% + $0.10
Card Present Advertising Interchange
Visa Interchange Rate
Advertising Consumer
1.55% + $0.10
Advertising Consumer Rewards
1.70% + $0.10
Advertising Signature
1.75% + $0.10
Advertising Signature Prefer
2.30% + $0.10
Restaurant Keyed Interchange
Visa Interchange Rate
Restaurant Consumer CNP Min
0.00% + $0.04
Restaurant Sign Prefer CNP Min
0.00% + $0.04
Restaurant Consumer CNP
2.20% + $0.00
Restaurant Sign Prefer CNP
2.70% + $0.00
Visa Charity Interchange Rates
Visa Charity Nonprofit Interchange
Current Interchange Rates
Visa Debit (Regulated)
0.05% + $0.22
Visa Charity Credit
1.35% + $0.05
PayPal Donation
2.20% + $0.30
Card Present Real Estate & Property Management Interchange
What is the average interchange fee in the United States?
In the United States, merchants typically pay an average interchange fee of 1.80%. However, these rates vary depending on how the transaction is processed:
In-person payments: Average interchange rate is approximately 1.70%.
Online payments: Average interchange rate is higher, at about 1.90%, due to increased fraud risk with card-not-present transactions.
AllayPay works to ensure businesses can navigate these fees efficiently and securely, no matter the payment method.
Who earns money on interchange fees?
Interchange fees are paid directly to the card-issuing bank. These fees cover:
Handling costs
Fraud and bad debt protection
The risk associated with approving payments
The merchant’s bank collects these fees during the transaction and transfers them to the card-issuing bank. With AllayPay, merchants can rely on transparent fee structures that ensure clarity in payment processing.
Can you negotiate interchange rates?
No, interchange rates are non-negotiable, regardless of the payment processor you choose. Even though processors like AllayPay cannot reduce interchange rates, businesses can qualify for Level 3 processing, which offers reduced costs for certain transactions.
Who determines interchange rates?
Interchange rates are set by credit card networks, including:
Visa
Mastercard
Discover
American Express
Visa and Mastercard, for instance, often update their rates twice a year—in April and October. AllayPay stays up-to-date with these changes to ensure your business processes payments seamlessly.
How do you explain interchange rates?
Interchange rates refer to the wholesale fees charged by credit card networks (e.g., Visa, Mastercard) for processing card transactions. Every time your business accepts a credit or debit card, these fees are applied as part of the transaction.
AllayPay simplifies the process, offering insights into these costs and helping merchants optimize their payment processing.
How are interchange rates calculated?
Interchange rates are calculated based on:
Transaction scenario: Whether the card is present or not.
Card type: Different rates apply to debit, credit, or rewards cards.
These fees consist of a percentage of the transaction amount plus a fixed fee. For example: 1.430% + $0.10 per transaction.
With AllayPay, merchants can better understand these calculations and find ways to minimize costs.
How much do card issuers make on interchange fees?
Card issuers typically earn between 1% and 3%, plus a flat fee per transaction. This revenue supports fraud prevention, processing infrastructure, and other services.
What is an example of an interchange rate?
A common interchange rate example is: 1.51% + $0.10 for a retail Visa card-present transaction.
Rates depend on factors like:
Industry type
Transaction method (card-present vs. card-not-present)
Card type (e.g., debit vs. rewards)
What is the difference between the merchant discount rate and interchange fee?
Interchange fee: Charged by the card networks and paid to the card-issuing bank. This fee is included in the merchant’s overall costs.
Merchant discount rate: The total fee merchants agree to pay for accepting card payments, including interchange fees, processing fees, and payment network charges.
AllayPay helps merchants manage both interchange fees and merchant discount rates, ensuring clarity and competitive pricing.
With AllayPay as your payment processor, navigating interchange rates becomes simple and cost-effective. Whether you’re accepting payments in-store or online, AllayPay provides the tools and support you need to optimize your payment processing.
