How does interchange work?

How does interchange work?

Interchange fees are set by banks and card schemes. These fees are typically updated twice a year. 
While there are many resources online where you can find these published fees we've found Credit Donkey to be a reliable source. 

https://www.creditdonkey.com/interchange-rates.html

As you can see, interchange rates vary based not only on card scheme, but by card type as well. 
For example, a Visa Rewards Signature Preferred card has an interchange rate of 2.4% + 10¢. Meanwhile a Visa Credit Basic card has an interchange rate of 1.8% + 10¢. 

You can see a visual representation of this system below.

How can I figure out my blended rate?

To figure out your blended rate, you can use your deposit report and divide fees by deposits (turned into a percentage).

Want to learn more?

Adyen has an in depth article about interchange as well as how interchange works.
https://www.adyen.com/knowledge-hub/interchange-fees-explained