{"id":10805,"date":"2024-02-08T08:53:23","date_gmt":"2024-02-08T13:53:23","guid":{"rendered":"https:\/\/faisalkhan.com\/?p=10805"},"modified":"2024-02-08T16:23:50","modified_gmt":"2024-02-08T21:23:50","slug":"understanding-interchange-fees","status":"publish","type":"post","link":"https:\/\/faisalkhan.com\/2024\/02\/08\/understanding-interchange-fees\/","title":{"rendered":"Understanding Interchange Fees: Why the difference in rates?"},"content":{"rendered":"\n
Interchange fees are fees paid between banks for the acceptance of card-based transactions. Typically, interchange fees earned from credit cards are higher than those from debit cards. There are several reasons for this difference:<\/p>\n\n\n\n
Despite the potential for higher earnings from credit card interchange fees, there are several reasons why fintech companies might choose to focus on debit-based programs:<\/p>\n\n\n\n
While credit programs can offer higher interchange revenue, the decision to offer credit versus debit products depends on a fintech company’s business model, target market, regulatory environment, and risk appetite. Offering credit products requires a robust risk management framework and regulatory compliance capabilities, which may be more challenging for some fintechs to develop and maintain.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Why Credit Cards Command Higher Rates Than Debit Cards and the Strategic Choices for Fintech Companies Interchange fees are fees paid between banks for the acceptance of card-based transactions. Typically, interchange fees earned from credit cards are higher than those from debit cards. There are several reasons for this difference: Despite the potential for higher […]<\/p>\n","protected":false},"author":1,"featured_media":10806,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[2556],"tags":[3905,4939],"blocksy_meta":[],"featured_image_urls":{"full":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC.jpeg",1920,1280,false],"thumbnail":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-150x150.jpeg",150,150,true],"medium":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-300x200.jpeg",300,200,true],"medium_large":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-768x512.jpeg",768,512,true],"large":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-1024x683.jpeg",1024,683,true],"1536x1536":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-1536x1024.jpeg",1536,1024,true],"2048x2048":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC.jpeg",1920,1280,false],"gb-block-post-grid-landscape":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-600x400.jpeg",600,400,true],"gb-block-post-grid-square":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-600x600.jpeg",600,600,true],"yarpp-thumbnail":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-120x120.jpeg",120,120,true]},"post_excerpt_stackable":"
Why Credit Cards Command Higher Rates Than Debit Cards and the Strategic Choices for Fintech Companies Interchange fees are fees paid between banks for the acceptance of card-based transactions. Typically, interchange fees earned from credit cards are higher than those from debit cards. There are several reasons for this difference: Risk and Credit Provision: Credit card transactions involve the credit card issuer providing a line of credit to the cardholder, which carries inherent risk, including the risk of non-payment. Interchange fees help to offset this risk. In contrast, debit card transactions draw directly from the cardholder’s bank account, presenting less…<\/p>\n","category_list":"blog<\/a>","author_info":{"display_name":"Faisal Khan","author_link":"https:\/\/faisalkhan.com\/author\/nomismad\/"},"comments_num":"0 comments","featured_image_urls_v2":{"full":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC.jpeg",1920,1280,false],"thumbnail":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-150x150.jpeg",150,150,true],"medium":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-300x200.jpeg",300,200,true],"medium_large":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-768x512.jpeg",768,512,true],"large":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-1024x683.jpeg",1024,683,true],"1536x1536":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-1536x1024.jpeg",1536,1024,true],"2048x2048":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC.jpeg",1920,1280,false],"gb-block-post-grid-landscape":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-600x400.jpeg",600,400,true],"gb-block-post-grid-square":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-600x600.jpeg",600,600,true],"yarpp-thumbnail":["https:\/\/faisalkhan.com\/wp-content\/uploads\/2024\/02\/Interchange-Rates-Faisal-Khan-LLC-120x120.jpeg",120,120,true]},"post_excerpt_stackable_v2":" Why Credit Cards Command Higher Rates Than Debit Cards and the Strategic Choices for Fintech Companies Interchange fees are fees paid between banks for the acceptance of card-based transactions. Typically, interchange fees earned from credit cards are higher than those from debit cards. There are several reasons for this difference: Risk and Credit Provision: Credit card transactions involve the credit card issuer providing a line of credit to the cardholder, which carries inherent risk, including the risk of non-payment. Interchange fees help to offset this risk. In contrast, debit card transactions draw directly from the cardholder’s bank account, presenting less…<\/p>\n","category_list_v2":"blog<\/a>","author_info_v2":{"name":"Faisal Khan","url":"https:\/\/faisalkhan.com\/author\/nomismad\/"},"comments_num_v2":"0 comments","yoast_head":"\n