Guides - Discount Payments

Effective Rates

The only number you need to know. The one rate to rule them all. Don't be fooled by advertised rates, the effective rate is the true rate.

What is Interchange?

As a business it is important you know the economic model underlying payment card transactions because you are a key component in it.

What is Interchange Plus Pricing?

Interchange Plus pricing is a billing method used by some credit card processors and works as follows; for every transaction there are essentially two parts, the “Interchange” and the “Plus”. In addition to Interchange - the base fee paid to an issuing bank - there is an additional, smaller, Card Brand fee that is paid to the card brand (Visa, Mastercard) for facilitating the transaction.

Changes to Visa & Mastercard Interchange

In the spring/summer of 2020, both card networks updated their interchange rates. Interchange is the cost rate processors pay to process payments made with credit cards. Different cards have different rates and these fees are paid directly to the issuing bank of the credit card.

The True Cost of Accepting Payments

You make the decision to accept payments any way your customers may want to pay – credit card, debit card, mobile payment options, etc. Your statement comes and you realize how expensive it is each month. Sound familiar? Maybe you’ve accepted these fees as a “simple cost of doing business”. Here is the reality – there is a very high chance you are overpaying for accepting these payments.

Discount Payments is a registered ISA of Ignite Payments. Ignite Payments is a registered DBA of First Data Canada Ltd. ©2021 First Data Corporation. All rights reserved. All trademarks, service marks and trade names referenced in this material are the property of their respective owners. First Data Canada Ltd. is a registered ISO/MSP of Wells Fargo Bank, N.A., Canadian Branch, Toronto, ON, Canada. Icons from www.flaticon.com.