Mastercard USA Interchange Rates

Interchange is the fee collected by the cardholder's bank (the card issuer) on every transaction. These rates are set by Mastercard and apply to all processors. It's the base cost that processors pay on every transaction, which is then passed on to merchants as part of their processing fees.

Mastercard typically updates interchange rates twice per year, in April and October. We update this page to reflect the latest published rates. For the most current official rates, you can visit Mastercard's merchant resources page.

Interchange-plus pricing is a transparent pricing model where you pay the actual interchange rate plus a fixed markup from your processor. Unlike bundled or tiered pricing, you can see exactly what the card networks charge and what your processor adds. This structure keeps costs predictable and eliminates hidden fees.

Keyed (card-not-present) transactions carry higher fraud risk because the physical card isn't verified. Card-present transactions where the chip is read or card is tapped have lower interchange rates because the card's authenticity is verified, reducing fraud risk for the issuing bank.

Level 2 and Level 3 processing refers to enhanced data transactions, typically for B2B and government purchases. By submitting additional transaction data (tax amount, customer code, line-item details), merchants can qualify for lower interchange rates on corporate and purchasing cards.

There are several ways to reduce interchange costs: use chip readers or tap-to-pay for card-present transactions, settle batches promptly, ensure proper transaction data is captured, qualify for Level 2/3 rates on B2B transactions, and consider compliant surcharge programs to offset costs.