Interchange

Interchange refers to the complex network and process used by payment networks like MasterCard® and Visa® to handle authorization, settlement, and the transfer of transaction-related fees and information. This system is crucial for the functioning of domestic and international card transactions, connecting various financial institutions that participate in the handling and processing of bank card activities.

The efficiency and reliability of interchange systems are vital for the smooth operation of credit and debit card networks. They ensure that payments are processed securely and swiftly across different banks and borders, enhancing the global usability of bank cards. This infrastructure supports the vast daily volume of transactions and helps maintain trust in the financial system by ensuring accuracy in the authorization and settlement of transactions.

Overall, interchange systems are foundational to the electronic payments ecosystem, enabling seamless, real-time transactions that benefit consumers, merchants, and financial institutions worldwide.