Frequently Asked Questions (FAQs) About April 2026 Interchange Updates
April 2026 interchange updates introduced new transaction categories across Visa, Mastercard, Discover, and American Express, increasing pricing complexity rather than overall rates. Businesses can manage costs by optimizing transaction data and ensuring proper classification.
Kyle Morgan
5/6/20262 min read
Interchange fees are the costs set by card networks (Visa, Mastercard, Discover, and American Express) that are paid between banks for processing card transactions. While merchants do not pay interchange directly, these fees are built into the rates charged by payment processors.
How often do interchange rates change?
Interchange rates are typically updated twice per year, in April and October. These biannual updates allow card networks to adjust pricing, introduce new transaction categories, and refine qualification criteria.
Did interchange rates increase in April 2026?
The April 2026 updates were not primarily focused on across-the-board rate increases. Instead, they introduced more detailed transaction categories and segmentation, which can indirectly impact costs depending on how transactions are classified.
Which card networks made changes in April 2026?
All major card networks made updates, including:
Visa (expanded retail, supermarket, utilities, and B2B categories)
Mastercard (new international debit programs and expanded B2B structures)
Discover (updates to public sector and PayPal-related categories)
American Express OptBlue (new utilities and small-ticket programs)
What industries are most affected by the April 2026 interchange updates?
The industries most impacted include:
Retail and supermarkets
Utilities and recurring billing businesses
B2B and commercial transactions
Travel and entertainment (T&E)
Government and public sector payments
How do interchange changes affect merchants?
Interchange changes affect merchants by influencing the overall cost of accepting cards. The impact depends on transaction type, card mix, ticket size, and how well transactions are optimized for the correct interchange category.
What is interchange optimization?
Interchange optimization is the process of structuring transactions—through proper data, timing, and classification—to qualify for the lowest possible interchange category. This is especially important for B2B, recurring, and card-not-present transactions.
Why are card networks adding more interchange categories?
Card networks are increasing segmentation to better align pricing with risk, transaction behavior, and industry type. This allows for more precise pricing but also increases complexity for merchants and processors.
Will these changes increase my processing fees?
Not necessarily. Some businesses may see increased costs if transactions downgrade into higher-cost categories, while others may benefit from new, more favorable categories. The net effect depends on your specific transaction profile.
What should businesses do after an interchange update?
Businesses should:
Review their processing statements
Ensure proper transaction data is being submitted
Confirm their processor has updated interchange tables
Evaluate opportunities for interchange optimization
How can I reduce interchange costs?
You can reduce interchange costs by:
Using Level 2 and Level 3 data for B2B transactions
Ensuring proper MCC (merchant category code) classification
Settling transactions quickly
Using tokenization and secure payment methods
Working with a processor that actively manages interchange optimization
For more information, download the following Descriptor Comparison excel files linked below. All information in red is a new or changed program effective April 17, 2026.