Interchange refers to the clearing and settlement of records between payment system participants. The term can also be used to describe the fees or transfer pricing between issuers and acquirers. Participating acquirers and issuers pay or receive interchange each time a credit or debit card is used. For example, banks pay interchange for card-based transactions. This fee tends to be paid by the acquiring bank or the merchant’s bank, to the consumer’s banks or the issuing bank.
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