How does Interchange-- work?
When a card transaction is processed in an Adyen issuing program, there is one revenue component and two different cost components.
- The Interchange revenue that the merchant pays the card issuing bank (Adyen)
- The scheme fee that goes to Visa or Mastercard (first -)
- The issuer fee (second -)
For each transaction, Adyen takes the interchange revenue and splits it with you. But before sending your share we deduct two fees: the scheme fee (first -) and our issuer fee (second -).
How are these fees set?
Scheme fees and Interchange fees are driven by variables such as the card level (platinum / commercial), by country of merchant, and the issuer, merchant segment, transaction type (online payments / POS payments), and many more.
The fees are set by the card schemes Visa and Mastercard and are regulated in some countries.
Issuer fees are set by Adyen and determined by monthly card volume.