Terms to Know

Interchange Fee

Synonymous with the Discount Rate, this is a fee paid by an acquirer to an issuer for transactions entered into interchange. The interchange fee is a percentage applied, according to Visa/MasterCard regulations, to the dollar value of each transaction (typically between 1% and 3%, depending on the type of transaction).

Issuer

Any association member financial institution, bank, credit union or company that issues, or causes to be issued, plastic cards to cardholders.