Interchange Optimization: 7 Strategies to Reduce Your Processing Costs

Interchange fees — the portion of each transaction paid to the card-issuing bank — represent the largest single component of payment processing costs for most merchants. While you can’t negotiate interchange rates directly (they’re set by Visa and Mastercard), you can take specific steps to qualify your transactions for lower interchange categories. Here are seven strategies that deliver measurable cost reductions.

1. Submit Level 2 Data on Corporate Card Transactions

When a business pays with a corporate or purchasing card, submitting Level 2 data (customer code, tax amount, postal code) qualifies the transaction for corporate card interchange rates, which are 0.5%–1.0% lower than standard card-present or card-not-present rates. For merchants with significant B2B volume, this single change can save thousands per month. Level 2 data submission is available through ConvesioPay via Adyen’s infrastructure.

2. Submit Level 3 Data for Large Purchasing Card Transactions

Level 3 data (line-item detail, product codes, shipping info) qualifies large purchasing card transactions for the lowest corporate interchange tiers — sometimes 1.5%+ below standard rates. Worth implementing for merchants with average order values above $1,000 on corporate cards.

3. Use AVS (Address Verification Service)

Submitting the cardholder’s billing address with each transaction via AVS signals a lower-risk transaction to the issuer. Cards that qualify for the best ecommerce interchange categories typically require AVS match. Merchants not using AVS may be paying higher interchange rates unnecessarily.

4. Settle Transactions Quickly

Interchange rates increase for transactions that aren’t settled within a defined window (typically 24 hours for most card types). Delayed settlement can push a transaction into a higher interchange category. Ensure your WooCommerce store settles authorized transactions the same day or next business day.

5. Pass Strong Authorization Data

Incomplete authorization requests — missing CVV, missing billing postal code, or inconsistent merchant descriptor — can cause transactions to downgrade to higher-cost interchange categories. Audit your authorization requests for completeness.

6. Optimize Card Type Mix Where Possible

Debit cards carry significantly lower interchange than premium rewards credit cards. Some merchants in B2B contexts can offer incentives for preferred payment methods — though care is needed around card network surcharging rules.

7. Use Network Tokenization for Recurring Charges

Network-tokenized recurring transactions can qualify for lower recurring transaction interchange rates while also improving authorization rates. ConvesioPay enables automatic network tokenization through Adyen.

Interchange Optimization and ConvesioPay

ConvesioPay processes at a transparent flat rate of 2.9% + $0.30 per transaction with no monthly fees — providing cost certainty regardless of card type. For merchants on flat-rate pricing, interchange optimization strategies like Level 2/3 data still apply where supported and can provide additional savings on eligible transaction types through Adyen’s infrastructure.