Personal Finance
What is interchange and who gets it?
Quick Answer
Interchange is the fee the merchant’s acquiring bank pays the cardholder’s issuing bank — typically 1.5-2.5% in the US. Set by Visa and Mastercard, it funds rewards, fraud losses, and float, so premium rewards cards charge merchants more.
Warren Team
Updated April 26, 2026
37
Warren Team
Updated April 26, 2026
37
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The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.
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