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Todays Maverick Minute is about Interchange fees. In most cases, they are the single largest expense that youll have to pay when accepting a customers credit or debit card. Understanding what they are and how they work might be giving you a headache. So well explain that for you. Meanwhile, if you have a question, drop it below and subscribe to our Channel! And now lets answer those questions! Every single credit or debit card transaction involves several business entities, and they all want their cuts in exchange for their services. Interchange fees are also referred to as interchange reimbursement fees. They are initially collected by the Credit Card Association that sponsor your customers card. They are paid to the issuing bank Which is the financial institution that sponsor your customers credit card. Thats kinda sound the same, right? This is where it can get tricky See, Discover and American Express function as both the sponsoring credit card Association and the issui
