31 Jan Unpacking Interchange with Kyle Morgan: Insights from the James Shepherd Podcast

The complexities of interchange fees can feel overwhelming for business owners and payment professionals alike. Recently, our very own Kyle Morgan, CEO of Mercantile Processing Inc. (MPI), joined James Shepherd on the Merchant Sales Podcast to provide a clear breakdown of this often misunderstood topic. Drawing from nearly two decades of experience, Kyle explored the hidden costs of interchange, how they impact businesses, and innovative strategies to minimize expenses.

Key Takeaways from the Episode:

1. What is Interchange?
   Kyle began by explaining the basics of interchange and its role as the largest cost for payment acceptance. He highlighted how these fees are structured by card networks like Visa and Mastercard and passed through issuing banks.
2. Hidden Costs and Padding:
   One of the most critical points Kyle touched on was the prevalence of interchange markup and padding. He described how merchants often unknowingly pay higher rates due to opaque practices in the industry and offered actionable advice on identifying and addressing these costs.
3. Optimization Tactics:
   Kyle also shared strategies for reducing interchange fees by leveraging Level II and Level III data for B2B transactions. These methods not only result in savings but also streamline the payment process for merchants.
4. Practical Applications for Businesses:
   From working with flagship hotels to partnering with ISVs, Kyle provided real-world examples of how MPI helps clients navigate and optimize their payment systems. His hands-on approach ensures businesses save money without compromising efficiency.

Why This Matters:
Understanding interchange is crucial for any business looking to maximize its profit margins. Kyle’s expert insights on the podcast serve as a valuable resource for anyone wanting to demystify these fees and implement strategies that work.

Listen to the Full Episode:
You can catch the full episode of the Merchant Sales Podcast featuring Kyle Morgan here. Don’t miss out on this insightful conversation!