Interchange - czym jest? Definicja pojęcia

Banking

Interchange – what is it? Definition of the term

3 October 2022

Interchange is a bank fee that is charged with each payment card transaction. It is charged directly or indirectly between the issuer and the clearing agent, i.e. the person or institution that is involved in carrying out this transaction. The amount of interchange is set by banks and varies depending on the type of card and its parameters.

What exactly is Interchange? Definition of the term

Interchange – who pays the fee?

The interchange fee is a fee paid for transactions directly or indirectly (e.g., through a third party) between the issuer and the clearing agent involved in a payment transaction based on a payment card. This fee is charged by the bank that issued the card and is transferred to the bank that operates the point of sale. If the transaction is carried out in Poland, and both banks are Polish banks, the interchange fee can be charged only once – from the card issuer’s side.

Author

Dudley Dean

As Dudley Dean, I've spent countless hours dissecting and elucidating the intricacies of the financial world for our readers at Chenbro.eu. My journey began in the bustling world of finance, where I quickly developed a penchant for making complex financial concepts accessible to everyone. With a background in finance and a passion for writing, I transitioned into editing, where I found my true calling. I've always been fascinated by the ebb and flow of the global economy, from the critical analyses of regulatory capital arbitrage to the nuanced discussions of banking operations and investment strategies. At Chenbro.eu, I strive to bridge the gap between the arcane world of finance and our daily lives, believing that informed decisions stem from clear, concise, and comprehensible information. Whether it's explaining the implications of the Asian financial crisis or breaking down the basics of blockchain technology, my goal is to empower our readers with knowledge, one article at a time.