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Interchange
Underlying card economics associated with the transaction.
Payments 101 / Interchange
The cost underneath the rate.
Interchange is one underlying component of card acceptance. Understanding it helps separate card economics from the pricing and fees a merchant sees on the statement.
Underlying card economicsNot Kuhudu markupVaries by transaction
The cost beneath the statement
Merchant-facing total expenseThe amount the merchant actually pays.
ISO / provider economicsMerchant-facing markup and applicable fees.
Processing / acquiringRouting and acquiring economics.
Network fees / assessmentsCard-brand costs.
InterchangeUnderlying card economics.
The core cost stack
A processing statement is built in layers.
Interchange matters, but it is only one part of the merchant's total expense. The full picture includes network, processing, merchant-facing, and other applicable charges.
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Network fees
Assessments and other card-brand costs that can appear in the processing economics.
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Processing / acquiring
Economics associated with routing, authorization, settlement, and acquiring relationships.
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Merchant-facing economics
Markup and applicable fees that shape what the merchant ultimately pays.
Why interchange varies
The same $100 sale can carry different underlying cost.
Card and transaction details matter. That is why a single quoted percentage cannot explain every transaction.
01 / Card
Card type
Credit vs. debit, consumer vs. commercial, and different card products can affect the underlying economics.
02 / Product
Rewards & premium
The card product itself can influence interchange characteristics.
03 / Entry
How it was accepted
Dip, tap, keyed, manual, card-present, and card-not-present transactions can behave differently.
04 / Data
Transaction data
The completeness and context of transaction information can affect how a transaction qualifies.
05 / Merchant
Business context
Merchant category and transaction context can also matter when evaluating underlying cost.
06 / Debit
Debit treatment matters
Do not assume rules or economics that apply to credit cards automatically apply to debit.
The Kuhudu distinction
Interchange is not the markup.
When we review a merchant statement, the goal is to separate underlying costs from the economics that may be controllable. That creates a much clearer conversation than simply comparing a headline rate.
Underlying card cost
Network / assessments
Processing economics
Merchant-facing fees
Keep learning
Put interchange in context.
Use the next guide based on what you want to understand.
Next / 01
Pricing Models
See how interchange-plus, flat, tiered, membership, and hybrid structures present cost differently.
Explore pricing models →Next / 02
Effective Rate
Turn total expense and volume into one comparable percentage.
Learn effective rate →Next / 03
Merchant Statements
Learn where the clues behind total processing expense show up.
Read the statement guide →