Interchange Optimization

Interchange fees are per-transaction transfer fees charged by your acquirer. The fee amount is based in part on the transaction amount that the acquirer submits to the payment network for clearing and settlement. Interchange optimization can help to reduce these fees for card-present transactions.

Payment Cards Supported with Interchange Optimization

  • Mastercard
  • Visa

Automatic Authorizations

Interchange optimization works by automatically performing additional authorization transactions for two types of card-not-present scenarios.
Automatic Authorization Refresh
If a capture request occurs more than 6 days after the date of the original authorization, the processor automatically obtains a fresh authorization for the capture amount.
Automatic Partial Authorization Reversal
If the capture does not need a fresh authorization but the capture amount is less than the authorization amount, the processor automatically performs a partial authorization reversal. The reversal releases the hold on unused credit card funds and ensures that the settlement amount matches the authorization amount.

How Interchange Optimization Transactions are Tracked

To find out when the processor performed automatic authorizations, see the daily processor report.

Limitations

  • Interchange optimization does not apply to transactions in which the payment card is present at the merchant's physical place of business.
  • Interchange optimization is not supported with incremental authorizations.

Requirement

Contact customer support to enable interchange optimization for your account.