Interchange for Acquirers

Interchange—one of an acquirer’s largest expenses—can escalate quickly due to downgrades, rule changes, and merchant behavior shifts.

Without active tracking, acquirers face avoidable pass-through costs, margin erosion, and pricing challenges.

  • Frequent interchange rate changes and shifting merchant behaviors can increase costs unpredictably.​

  • Manual tracking exposes acquirers to downgrade risks and missed incentive opportunities.​

  • Untracked interchange trends make it difficult to optimize merchant pricing and protect margins.​

Substantial interchange cost savings can typically be achieved through optimization.

A presentation slide titled "Economics of Interchange Fees (Illustrative)" over a background of assorted credit cards. The slide contains text discussing interchange revenue, fees, and profitability components, with highlighted sections emphasizing k
A presentation slide titled "Economics of Interchange Fees (Illustrative)" over a background of assorted credit cards. The slide contains text discussing interchange revenue, fees, and profitability components, with highlighted sections emphasizing k
Interchange Optimization​

There are multiple levers we can pull for Interchange Optimization ​

01 Avoidance of Downgrade Rates
Missing required network data (e.g., IRD or Reimbursement Attribute) can trigger costly downgrade rates.
02 Qualification for Optimal Rates
Ensure correct set-up and adherence to network rules to achieve the best available interchange rates.
03 Benefitting from Incentive Rates
Provision of optional addendum data can unlock lower incentive interchange rates
04 MCC Reclassification
Identify and validate opportunities to reclassify merchants into categories with lower fee program rates.
05 Airline Optimization
Using ‘first leg of journey’ routing optimization logic to increase share of domestic vs. cross-border volumes.
06 Merchant Pass-Through
Ensuring blended and IC+/++ pricing methodologies accurately reflect and recover interchange costs.
01 Avoidance of Downgrade Rates
Missing required network data (e.g., IRD or Reimbursement Attribute) can trigger costly downgrade rates.
02 Qualification for Optimal Rates
Ensure correct set-up and adherence to network rules to achieve the best available interchange rates.
03 Benefitting from Incentive Rates
Provision of optional addendum data can unlock lower incentive interchange rates
04 MCC Reclassification
Identify and validate opportunities to reclassify merchants into categories with lower fee program rates.
05 Airline Optimization
Using ‘first leg of journey’ routing optimization logic to increase share of domestic vs. cross-border volumes.
06 Merchant Pass-Through
Ensuring blended and IC+/++ pricing methodologies accurately reflect and recover interchange costs.
Cardtraq for Interchange
Computer monitor displaying various financial charts including pie charts, line graphs, and bar graphs, on a desk with a keyboard and a cup holding pens.
Logo with the text 'CardTraq - For Interchange' in stylized blue font.

Our interchange tracking platform is a cloud-based tool which helps acquirers manage interchange costs, prevent downgrades, and strengthen pricing strategies.

The platform ingests clearing data and provides detailed visibility into merchant volume, interchange costs, and downgrade trends by network, card product, and merchant category:​

  • Prevent Margin Erosion — Spot cost increases and downgrade risks early and act.​

  • Support Merchant Pricing — Provide insights to inform merchant repricing and pass-through accuracy.​

  • Enhance Reporting — Deliver actionable insights to pricing, risk, and finance teams.​

  • Maximize Incentives — Identify and manage opportunities for interchange fee savings.​

How it Works

Control costs and unlock growth with detailed tracking and actionable insights.​​​​

Computer monitor displaying financial analysis charts and graphs on a digital dashboard, with potted plants nearby.

Our Interchange Tracking Platform is cloud-based and features:​

  • Daily, weekly, monthly ingestion of clearing data & volumetrics​.

  • Automated flagging of sub-optimal rate exposure.​

  • Extensive reporting and​ analysis tools providing valuable inputs to pricing processes, margin management, and merchant repricing.​

  • Interchange analysis to transaction type level by merchant, MCC/MCG, network, card product, geography, channel, Interchange Rate Designator (IRD) / Fee Program Indicator (FPI).​

Our Team
People in a modern office analyzing charts and graphs on computers and large screens, focused on data and financial reports.

CardTraq — created in partnership with Pinnacle Payment Economics — is based on over 100 years of card network economic and real-world compliance experience. ​

Our experts can work alongside your team to identify and implement savings opportunities and ensure you get the maximum value from the CardTraq platforms.​