7 Mistakes You're Making with Merchant Interchange Fees (and How to Fix Them)

Interchange fees. The silent profit killer.

Every swipe, tap, and online checkout chips away at your margins. We're talking 1.5% to 3.5% per transaction. For high-volume merchants? That's thousands: sometimes tens of thousands: gone every month.

Most merchants just accept it. They shouldn't.

Here's the truth: you're probably making costly mistakes with your interchange fees right now. Worse? Traditional payment processors count on your confusion.

Let's break down the 7 biggest interchange mistakes merchants make: and show you how decentralized crypto payments can eliminate these headaches entirely.

Mistake #1: Assuming You Understand Your Pricing Model

You signed the contract. You saw the rates. You think you know what you're paying.

You probably don't.

Payment processors love vague language. Terms like "assessments," "network fees," and "transaction surcharges" mask hidden costs. That 2.9% + $0.30 rate? It's just the beginning.

The Fix: Ask specific questions. Demand written breakdowns. Better yet? Stop playing their game entirely.

With Larecoin's crypto payment solutions, there's no interchange. No card networks taking cuts. Just transparent, peer-to-peer transactions with fees you can actually see and understand.

Mistake #2: Falling for Padded Interchange Schemes

Here's a dirty secret: unethical processors pad interchange rates.

The published Visa Rewards interchange might be 1.65% + $0.10. Your statement shows 1.80% + $0.10. Where'd that extra 0.15% go?

Straight into your processor's pocket.

They're betting you won't cross-reference Visa and Mastercard's published tables (updated every April and October). Most merchants never do.

The Fix: Audit line-by-line. Compare against official network rates.

Or skip the headache completely.

Crypto payments through Larecoin mean zero interchange padding. No middleman inflating costs. What you see is what you pay. Period.

Platforms like NOWPayments and CoinPayments offer crypto alternatives, sure. But they still charge conversion fees and processing markups that eat into your savings. Larecoin's gas-only transfer model keeps more money where it belongs: in your wallet.

Mistake #3: Neglecting Regular Fee Audits

When's the last time you actually analyzed your interchange costs?

Six months ago? A year? Never?

You're not alone. Most merchants operate on rough estimates. They know they're paying "something" but couldn't tell you the exact monthly number.

That vagueness costs real money.

The Fix: Establish monthly audit schedules. Track exact costs. Identify patterns.

With Larecoin, every transaction is recorded on-chain. Full transparency. No hidden statements. No "mystery fees" appearing months later. Plus, our NFT receipt system gives you immutable proof of every payment: perfect for accounting and audit trails.

Mistake #4: Sticking with Flat-Rate Pricing

Flat-rate pricing sounds simple. 2.9% + $0.30 per transaction. Done.

Simple doesn't mean smart.

If you're processing significant debit card volume, in-person transactions, or high monthly totals, flat-rate pricing is costing you big. Debit interchange runs way lower than credit: but flat-rate charges you the same regardless.

The Fix: Switch to interchange-plus pricing. Pay actual network rates plus a small fixed markup.

Or go further.

Crypto payments eliminate tiered pricing entirely. No debit vs. credit distinctions. No "card-present" vs. "card-not-present" penalties. Larecoin transactions carry minimal gas fees on Solana: we're talking fractions of a cent compared to dollars per traditional transaction.

Compare that to CoinPayments, which charges 0.5% per transaction plus withdrawal fees. Larecoin's self-custody model means you control your funds immediately. No waiting. No extra extraction.

Mistake #5: Misunderstanding Who Controls the Markup

Common myth: processors set interchange rates.

False.

Card networks (Visa, Mastercard) set base interchange. Processors pass that through: then add their own markup on top.

That markup? Totally negotiable.

But here's the problem: most merchants don't know they can negotiate. Processors prefer it that way.

The Fix: Focus negotiations on the processor's markup, not the network rates you can't change.

Better fix? Remove processors from the equation.

Larecoin operates on decentralized rails. No processor middleman padding margins. No "negotiation" needed because there's nothing to negotiate. Direct merchant-to-customer payments. True financial independence.

Mistake #6: Allowing Transaction Misclassification

Transaction coding matters more than you think.

Card-present transaction coded as "keyed-in"? Higher fees. Address verification mismatch? Higher fees. Late settlement? Higher fees.

Misclassification happens constantly. Sometimes it's processor negligence. Sometimes it's system errors. Either way, you pay the penalty.

The Fix: Verify coding accuracy. Ensure customer data matches. Settle promptly.

Crypto transactions don't have classification tiers.

A Larecoin payment is a Larecoin payment. No "rewards card" surcharges. No "business card" premiums. No penalties for how the customer chooses to pay.

Plus, LUSD (Larecoin's stablecoin) eliminates volatility concerns while maintaining crypto's fee advantages. Merchants accepting LUSD get fiat stability without traditional payment processing costs.

NOWPayments offers stablecoin support too: but their 0.5% processing fee still cuts into your margins. Larecoin's ecosystem keeps fees minimal by design.

Mistake #7: Ignoring Merchant Category Code Optimization

Your MCC (Merchant Category Code) directly impacts interchange rates.

High-risk industry? Higher fees baked in automatically.

Here's what most merchants miss: some businesses qualify for multiple MCCs. Strategic classification can unlock lower rates: if you know what you're doing.

The Fix: Work with experts to determine optimal MCC assignment. Stay compliant while minimizing costs.

Crypto payments bypass MCC classification entirely.

Larecoin doesn't care if you're selling software subscriptions or artisanal coffee. No industry penalties. No "high-risk" surcharges. Every merchant gets the same transparent, low-cost access.

That's real merchant freedom.

The Bigger Picture: Why Crypto Payments Win

Traditional interchange is a broken system built to benefit card networks and processors: not merchants.

You can optimize within that system. Audit more. Negotiate harder. Switch pricing models.

Or you can step outside it completely.

Larecoin offers:

• Zero interchange fees – No card networks taking cuts

• Self-custody – Your funds, your control, instantly

• NFT receipts – Immutable transaction records for seamless accounting

• LUSD stablecoin – Crypto benefits without volatility risks

• Gas-only transfers – Fractions of a cent vs. percentage-based fees

• Decentralized infrastructure – No processor middlemen

Competitors like CoinPayments and NOWPayments introduced merchants to crypto payments. But their fee structures still mimic traditional processing models: percentage cuts, conversion fees, withdrawal charges.

Larecoin was built different. Built for merchant independence. Built for the Web3 economy.

Ready to Stop Bleeding Fees?

Every day you stick with traditional interchange, money leaks from your business.

The fixes above can help: if you want to keep fighting within a rigged system.

Or you can break free entirely.

Explore Larecoin's merchant solutions and discover what payment processing looks like when it's actually built for merchants.

No hidden fees. No padded interchange. No processor games.

Just clean, transparent, decentralized payments.

Your margins will thank you.