What is an Interchange?
An interchange is an electronic transfer of information. In the business world, this usually involves financial data.
How Does an Interchange Work?
Banks are common users of interchange data because they credit or debit card, information about the purchase is transmitted through an electronic data interchange (called an EDI) that exists between retailers and banks. This interchange activity is necessary for retailers to receive payment for the of goods and services, but it is not free. Banks usually charge an interchange fee, which is usually a combination of a percentage of the transaction size (around 2%-3%, depending on the card and the size of the transaction) plus a flat fee.cards and cards. When a customer uses his or her
Why Does an Interchange Matter?
Without interchanges, there would be no electronic banking. The advent of the Internet has increased its use and prevalence, and card issuers get a considerable portion of their revenues from interchange fees.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
If you've ever taken a road trip, you know there are usually two ways to get to a place: the boring interstate way and the "scenic" route. The first option is...Read More →