If you process more than $100 million in annual card payments, you already know interchange fees are one of your biggest expenses—often accounting for up to 80% of total processing costs. What you may not realize is just how much of that cost is controllable.

Your payments data isn’t just a record of transactions—it’s a roadmap to profitability. In our latest guide, we outline four strategies top merchants are using to take control of interchange and uncover major savings.

Here’s a look at the key strategies:

1. Use AVS More Strategically

The Address Verification System (AVS) does more than fight fraud—it can actually help reduce your interchange fees. For card-not-present or manually keyed Visa and Discover transactions, including both the zip code and numeric street address improves your chances of qualifying for lower rates. And while AVS is only required on some transactions, it’s smart to apply it consistently across all networks.

2. Tighten Up Your Authorization & Settlement Timelines

Timing is critical. If transactions are authorized but not settled within network-specific windows, they can downgrade to more expensive interchange tiers. Retailers should aim to settle within 24 hours, while eCommerce businesses need rules in place to manage holds—especially if shipping is delayed. Stay within that sweet spot, and you’ll avoid unnecessary costs.

3. Leverage Level II & III Data on Commercial Cards

If your customers often pay with business, corporate, or purchasing cards, you’re leaving money on the table if you’re not submitting Level II or Level III data. These enhanced data levels—like sales tax amounts and SKU-level detail—can reduce your interchange rate by 5 to 165 basis points. One of our clients saved $5–6 million per year by making this one change.

4. Implement Least Cost Debit Routing (LCR)

Debit transactions can be routed across multiple networks, and not all routes cost the same. With LCR, you (or your processor) can direct transactions to lower-cost PIN networks instead of defaulting to Visa or Mastercard rails. This is a massive savings lever—especially for high-volume merchants.

Want the Full Breakdown (With Actionable Tips)?

This blog is just a preview. The full guide includes real-world examples, compliance details, and implementation tips for each strategy.

📘 Download the full ebook: “The Merchants Guide to Lower Interchange Fees”