Lowering operating costs is always a good thing, as long as it can be done constructively and legally. Many times, the success of your business will depend on it. The fact that everybody has to take their cut of your profits before they get to you can create a challenging situation and make the complexities of payment processing quite daunting. We are here to not only provide world-class processing services, but to help you understand our world and how it works for you.

In our last blog, we went into some detail about how interchange fees work. Understanding what makes interchange what it is will help you going forward. Today, we want to talk about a common topic for merchants: how to minimize interchange fees.


The best way to do this is to strictly follow best practice for card acceptance. Remember, the lower the risk, the lower the fee. Now, what does best practice look like?

  • If a terminal can’t read a card and you have to enter information manually, make sure you check and verify the cardholder’s address. Use the Address Verification Service to do this.
  • Always settle your point-of-sale every day. If you don’t, you will run into downgrades and raised interchange rates.
    Always get proper authorization for your transactions.
  • Restaurants must adjust for tips before settling the batch at the end of each day.
  • Hotels must enter and track check-in and check-out dates as well as folio numbers.

The best way to minimize the risk of your transactions is stick to the guidelines developed over time. The guidelines are made to protect everyone involved. Make sure you have the very best credit card processing when you work with Impact Payment Systems!