What is an interchange fee? How card payments are split, and who earns what
By SendPay Business · · 2 min read
- 1Your card appears in your app
- 2Tap it to pay in a shop
- 3See every payment as it happens
Every time someone pays by card, the shop pays a fee, and part of it goes to the bank or firm that issued the card. That part is the interchange fee. It's small on each payment, but it's one of the main ways card-issuing money apps earn.
Who's involved in a card payment
- The cardholder, who pays.
- The shop, which takes the payment.
- The acquirer, the firm that processes card payments for the shop.
- The card scheme, such as Visa or Mastercard, which runs the network.
- The issuer, the bank or firm that gave the cardholder the card.
Where interchange fits
The shop pays its acquirer a fee for each payment. Out of that, the acquirer pays interchange to the card issuer and a scheme fee to the card network, and keeps the rest as its own margin.
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The UK caps
For most UK consumer card payments, interchange is capped at 0.2% of the payment on debit cards and 0.3% on credit cards. Business cards, and some cross-border payments, aren't covered by the same caps and are often higher.
Why it matters for a new money app
If you give your customers their own branded cards, you're on the issuer side, so part of the interchange on their spending can come to you through your card partner. How much depends on your partner's terms, so ask for that in writing before you launch.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
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- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
Does the cardholder pay interchange?
Not directly. The shop pays it as part of its card fees.
What do card fees cost a shop?
The card fee calculator shows what a shop keeps after its percentage and fixed fee.
Card fee calculator →Can I offer my own branded cards?
Yes. SendPay card platforms, powered by licensed partners, are free to design and preview, and you launch when you are ready.
Branded Visa cards →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.