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June 30, 2022
by David Goodale

Lower Processing Costs with Recurring Interchange

(Edited from video transcript for greater readability)

Hello, David here at with a super quick tip for Canadian businesses.

If your business handles recurring credit card transactions, these transactions qualify for lower interchange rates. An example of such a business would be Netflix because it accepts payments that recur every month. Subscription payments get a lower interchange rate from Visa and MasterCard.

How Much You Can Save With Recurring Interchange

The reduction in the transaction rate you receive depends on the type of credit card. As a best practice, if you own a business that offers subscription billing to your customers, you should guarantee that you're utilizing interchange plus pricing. You can probably save around 0.1% to 0.15% in processing fees which will depend on the card type.


This advice also applies to other regions though recorded from a Canadian-centric perspective. I hope you found this helpful. Thanks for watching. Have a great day there. Bye now.

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David Goodale About the Author

My name is David Goodale, CEO at Merchant I launched our business in 2001 and have over 20 years of expertise in the field of online payments. If you have a payments related question or project, and especially if it relates to multi-currency or international e-commerce don't hesitate to contact me. I'm always happy to help with an honest opinion, and enjoy chatting with folks from interesting businesses.

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