Interchange rates are the base fees set by the major credit card networks—Visa, Mastercard, and Discover—every time a customer pays with a card. These fees are built into every card transaction in the United States and are not set by your payment processor.

When a customer taps, swipes, or enters their card, a small portion of that sale goes to the card-issuing bank and the card network. This is called “interchange.” It’s a standard industry cost that applies to all businesses, whether you’re a vape shop, liquor store, or retail store.

The exact rate depends on the type of card being used. For example, basic debit cards usually have lower fees, while rewards cards, business cards, and premium credit cards have higher fees. Transactions run in-store (card present) also tend to cost less than online or manually keyed-in payments because they are considered lower risk.

All payment processors in the U.S. use the same interchange rates. The difference between providers is not the interchange itself, but how much extra they charge on top of it. Some companies add higher markups, while others use more transparent pricing like interchange-plus.

For store owners, the key takeaway is simple: interchange is unavoidable, but how much you pay above it is where your savings come from. Choosing the right pricing model can significantly reduce your monthly processing costs and improve overall profit margins.