7 Mistakes You're Making with Merchant Interchange Fees (And How Larecoin Fixes Them)

Interchange fees are silently eating your profits.

Every swipe. Every tap. Every online checkout. Card networks and processors take their cut. We're talking 1.5% to 3.5% per transaction, sometimes more.

For merchants processing $100,000 monthly? That's up to $3,500 vanishing into thin air. Every. Single. Month.

The worst part? Most merchants don't even realize they're making costly mistakes that inflate these fees even further.

Let's break down the seven biggest interchange fee mistakes merchants make, and how Larecoin's decentralized crypto payment ecosystem eliminates them entirely.

Mistake #1: Assuming You Understand the Pricing Offer

"Interchange Plus" sounds transparent. Simple. Fair.

It's not.

Processors bury real costs in places you'd never think to look:

• Assessment fee markups

• Network access fees

• PCI compliance charges

• Monthly statement fees

• Batch processing fees

That "competitive rate" you negotiated? It's just the tip of the iceberg. The real expenses hide beneath layers of fine print and confusing statements.

How Larecoin Fixes It:

No interchange fees. Period.

Larecoin operates outside the traditional card network ecosystem. When customers pay with LARE or LUSD (our stablecoin), there are no card networks taking a slice. No hidden assessment fees. No mysterious monthly charges.

What you see is what you get. Gas fees only. Full transparency.

Mistake #2: Letting Processors Hide Margins in "Assessments"

Even with cost-plus pricing, processors play games.

They embed extra profit margins into assessment categories. Then they label these charges as "interchange fees" on your statement. Sneaky, right?

Here's the kicker: Card networks publish over 300 interchange rate categories. Good luck auditing that. Processors know you won't. They count on it.

How Larecoin Fixes It:

Self-custody means total control.

With Larecoin, funds go directly to your wallet. No middleman holding your money. No processor skimming extra margin and calling it "assessment fees."

Your crypto. Your wallet. Your rules.

Mistake #3: Misclassifying Transactions

Transaction classification matters more than you think.

A card-present chip transaction costs less than a keyed-in transaction. Why? Lower fraud risk.

But here's where merchants lose money:

• POS system errors

• EMV chip reader glitches

• Manual card entry defaults

One misclassification bumps you into a higher interchange tier. Multiply that across thousands of transactions annually? You're hemorrhaging cash.

How Larecoin Fixes It:

Crypto transactions don't have tiers.

There's no card-present vs. card-not-present distinction. No EMV chips to malfunction. No keyed entry penalties.

A Larecoin transaction is a Larecoin transaction. Simple. Flat. Predictable.

Mistake #4: Not Settling Transactions Same-Day

Card networks penalize delayed settlement.

Batching transactions at end-of-week instead of end-of-day? Higher interchange rates. The networks view delayed settlement as increased risk. And they charge you for it.

Many merchants don't even realize this is happening. Their POS systems default to weekly batching. Money lost without a second thought.

How Larecoin Fixes It:

Blockchain settlement is near-instant.

Larecoin transactions settle in seconds, not days. No batching required. No penalties for "delayed" settlement because there's nothing to delay.

Funds hit your wallet immediately. Done.

Mistake #5: Failing to Submit Level II/III Data

B2B merchants leave serious money on the table here.

Card networks reward enhanced transaction data with lower interchange rates:

Level II Data:

• Sales tax amount

• Customer code

• Merchant postal code

Level III Data:

• Line-item details

• Product codes

• Freight amounts

Miss these fields? You're paying premium rates unnecessarily.

How Larecoin Fixes It:

NFT receipts capture everything automatically.

Larecoin's NFT receipt system creates immutable, detailed transaction records on-chain. Every line item. Every product code. Every relevant detail, permanently recorded and verifiable.

No manual data entry. No missed fields. No higher rates.

Plus, your customers get a digital proof of purchase they can actually use. Everyone wins.

Mistake #6: Sticking with Legacy Crypto Payment Processors

So you've already explored crypto payments. Smart move.

But are you using NOWPayments or CoinPayments?

These platforms helped pioneer merchant crypto acceptance. Credit where it's due. But they come with limitations:

• Conversion fees eating into your margins

• Custodial wallets holding your funds

• Limited stablecoin options creating volatility risk

• Generic receipts without blockchain verification

You escaped traditional interchange fees: only to encounter a new set of platform fees and restrictions.

How Larecoin Fixes It:

True decentralization. True merchant freedom.

Larecoin's ecosystem is built different:

• LUSD stablecoin eliminates volatility concerns

• Self-custody wallets mean you control your funds 24/7

• Gas-only transfers keep costs minimal

• NFT receipts provide verifiable proof of every transaction

No platform holding your money hostage. No conversion fees when you accept LUSD directly. No middleman deciding when you can access your earnings.

This is what merchant independence actually looks like.

Mistake #7: Ignoring the Crypto Payment Revolution Entirely

The biggest mistake? Thinking interchange fees are just "the cost of doing business."

They're not. They're a legacy tax on merchants who haven't discovered alternatives.

Global crypto payment adoption is accelerating. Merchants accepting decentralized payments are:

• Reducing transaction costs by 60-90%

• Reaching crypto-native customers worldwide

• Future-proofing their payment infrastructure

• Building customer loyalty through innovative experiences

Meanwhile, merchants clinging to card-only acceptance watch competitors capture the growing crypto economy.

How Larecoin Fixes It:

One ecosystem. Complete solution.

Larecoin isn't just another crypto payment processor. It's a full Web3 payments ecosystem:

• LARE token for ecosystem participation and rewards

• LUSD stablecoin for price-stable transactions

• NFT receipts for immutable purchase records

• Push-to-card for easy fiat off-ramping when needed

• Self-custody for true financial sovereignty

Accept crypto. Keep more revenue. Give customers a better experience.

The Bottom Line

Interchange fees are a choice.

Every month, traditional payment processors extract billions from merchants worldwide. Hidden fees. Complex tiering. Delayed settlements. Custodial control.

It doesn't have to be this way.

Larecoin offers a clear alternative:

✅ No interchange fees ✅ Transparent, gas-only costs ✅ Instant blockchain settlement ✅ Self-custody from day one ✅ NFT receipts with complete transaction data ✅ LUSD stablecoin for volatility-free acceptance

The merchants winning in 2026 aren't optimizing their interchange rates. They're eliminating interchange entirely.

Ready to stop making these costly mistakes?

Explore Larecoin's merchant solutions →

The future of payments is decentralized. The future is now.