What Is Interchange (Quick Refresher)

Interchange is the base cost set by the card networks (Visa, Mastercard, Discover, and American Express) and paid to issuing banks for handling card transactions.

Interchange:

• Is non-negotiable
• Changes regularly
• Makes up the largest portion of processing costs
• Varies by card type, transaction method, and risk level

Processors and ISOs do not control interchange—but they do control how transparently it’s passed through.

Why Interchange Keeps Changing

Card networks update interchange to reflect:

• Fraud trends
• Consumer payment behavior
• Technology changes (EMV, contactless, mobile wallets)
• Regulatory pressure
• Bank profitability models

As payments evolve, interchange is adjusted to reward certain behaviors and penalize others.

2026 continues this trend.

Interchange & Network Changes Expected in 2026

While exact rates vary by network and transaction type, several clear themes are emerging.

1. Continued Pressure on Card-Not-Present Transactions

Online, mobile, and keyed transactions remain higher risk than in-person EMV payments.

In 2026, merchants should expect:

• Ongoing scrutiny of eCommerce transactions
• Greater emphasis on fraud prevention tools
• More differentiation between “secure” and “non-secure” transactions

Merchants using outdated gateways or skipping fraud tools may feel this most.

2. More Emphasis on Data Quality & Transaction Details

Card networks continue rewarding transactions that provide:

• Complete data fields
• Accurate authorization information
• Proper transaction indicators

Missing or incorrect data can push transactions into higher-cost interchange categories.

This impacts:

• Retailers using older terminals
• Merchants with poorly configured POS systems
• Businesses with custom or legacy integrations

3. Ongoing Adjustments to Rewards & Premium Cards

Rewards cards continue to drive higher interchange costs.

In 2026:

• Premium and rewards cards are expected to remain costly
• Consumer demand for points and cash back isn’t slowing
• Merchants will continue absorbing higher fees unless they adopt cost-control strategies

This is one of the biggest drivers behind pricing model changes across the industry.

4. Network Rule Changes Beyond Interchange

Not all fee increases come from interchange alone.

Merchants may also see changes related to:

• Network assessments
• Compliance requirements
• Chargeback monitoring programs
• Authorization and data integrity fees

These often appear quietly on statements and are frequently misunderstood.

What This Means for Merchants in 2026

For merchants, interchange changes mean:

• Processing costs may fluctuate even without switching providers
• Statements may become harder to interpret
• Flat-rate pricing may mask rising costs
• “Set it and forget it” processing is risky

Merchants who don’t review statements regularly are often the most surprised.

What This Means for Merchant Services Agents

For agents, interchange changes create opportunity—not obstacles.

Agents who understand:

• How interchange works
• Why rates change
• How POS systems affect costs
• Which pricing models provide transparency

…position themselves as trusted advisors instead of rate chasers.

In 2026, education sells more than discounts.

How Technology Helps Offset Interchange Changes

Modern payment solutions can reduce exposure to higher interchange by:

• Encouraging EMV and contactless payments
• Reducing keyed transactions
• Improving data accuracy
• Integrating fraud prevention tools
• Supporting compliant pricing strategies

Technology doesn’t eliminate interchange—but it can control how often merchants fall into higher-cost categories.

How Beacon Payments Helps Merchants Navigate Interchange Changes

At Beacon Payments, we believe merchants shouldn’t be surprised by fee changes they don’t understand.

We help merchants and agents by:

• Explaining interchange in plain English
• Offering transparent pricing models
• Aligning POS technology with lower-risk transactions
• Helping merchants adapt as networks change
• Protecting the agent’s long-term reputation

Interchange will continue to evolve—but confusion doesn’t have to.

Final Thoughts: Preparing for Interchange Changes in 2026

Interchange changes aren’t new—but their impact is growing.

Merchants who stay informed make better decisions.
Agents who educate create long-term value.
Processors who prioritize transparency build trust.

In 2026, the winners won’t be those promising the lowest rate—they’ll be the ones helping businesses understand, adapt, and plan.