03 MECH · Department
How a payment actually travels
Issuers, acquirers, interchange, tokens and settlement: the machinery behind a card payment, explained without the jargon.
Issuer, acquirer, network, processor: the cast behind every card payment
A card payment looks like two parties, you and a shop. Behind the button there are at least four more, each with its own job, its own fee and its own say in whether the payment goes through. Here is who they are and what each one does.
Interchange: the fee inside every card payment that you never see
Every time you pay by card, a fee moves from the shop's bank to yours. You never see it, the shop rarely names it, and it shapes prices, rewards programs and surcharges all the same. Here is what interchange is, who sets it and why it matters.