This is the fee that the card association charges the merchant to arrange for the funds to be deposited into merchant’s bank and to arrange for the billing information to be delivered to the cardholder’s bank, also know as the issuing bank. Interchange fees are based on credit card regulations and vary by the amount of data captured from the transaction (including card swipe, address, and electronic signature as needed). These fees are also based on the timeliness of the settlement of transactions.

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