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Breakdown and Get Interchange Process 1

Merchant banks add amount for providing access to the authorization and settlement infrastructures plus their costs for the transaction processors and settlement processors, including their profit margins, thus creating and setting their buy rate.

Independent Sales Organizations then add amount to that for their cost and profit structures, thus creating a second level buy rate for their sales person and also their independent contractors. For your notice, these buy rates can vary even within the same organization, but the initial interchange rates are established by the card associations

Independent Sales Organization – ISO sales person then add their cost and profit structures, create, and setting the final discount rates for the merchant. Sometimes the ISO can set the discount rates, but the practice varies widely within the market.

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