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

Traditional payment processing is a rigged game. If you’re a merchant in 2026, you’re likely still handing over 3% to 5% of every sale to a middleman who does nothing but "verify" a transaction that should take seconds.

Interchange fees are the silent killer of margins. They are complex, opaque, and designed to keep you in the dark. While you’re trying to grow your business, banks and legacy processors are busy adding "padding" and "surcharges" to your monthly statements.

It’s time to stop the bleeding. At Larecoin, we’re disrupting this entire model with Web3 global payments and AI-driven efficiency.

Here are the 7 biggest mistakes you’re making with interchange fees, and how Larecoin.ai fixes them.

1. Accepting "Interchange Plus" Pricing at Face Value

Many merchants think "Interchange Plus" is the gold standard for transparency. It sounds fair: the processor passes through the raw cost from Visa or Mastercard and adds a small markup.

The Reality: Processors hide the real costs in the "Plus" side. They quote a competitive markup like +0.15% + $0.10, but then hit you with monthly minimums, gateway fees, and statement fees. You’re still paying a premium for a service that hasn't innovated in decades.

The Larecoin.ai Fix: We don't do "plus" pricing because we don't use the legacy rails. Larecoin leverages the Solana blockchain for gas-only transfers. Instead of complex fee structures, you get direct, decentralized transactions. By using Larecoin.ai, you bypass the interchange layer entirely. No markups. No hidden "plus." Just pure efficiency.

2. Ignoring "Interchange Padding" on Your Statements

Processors often add phantom fees to your statements. They call it "interchange," but that money never actually goes to the card networks. They keep the difference, betting on the fact that you won't audit a 50-page merchant statement.

The Reality: Detecting padding requires a PhD in finance and hours of manual labor. Most merchants simply pay the bill and move on.

The Larecoin.ai Fix: Blockchain is the ultimate auditor. Every transaction on the Larecoin network is recorded on a public ledger. There is no "padding" because there is no middleman to take it. With our Web3 global payments solution, what you see is what you get. Our AI tools monitor network health to ensure you’re always paying the lowest possible gas fee, often a fraction of a cent.

3. Losing Money on Transaction Misclassification

Did you know a card-present transaction (swiped) costs less than a card-not-present transaction (online)? If your system isn't optimized, your online transactions might be getting flagged with higher risk profiles, triggering higher interchange tiers.

The Reality: Legacy systems are "dumb." They don't optimize for your specific business type or transaction volume.

The Larecoin.ai Fix: Larecoin.ai uses machine learning to categorize and optimize payment flows. Whether you're using our contactless POS or an e-commerce checkout, the system ensures the transaction is routed with maximum efficiency. We don't distinguish between "swiped" or "online" in the way banks do, crypto is crypto. It’s always fast, always secure, and always the lowest cost.

4. Settling for T+3 Liquidity Traps

When you accept a credit card, you don't get your money instantly. The bank holds your funds for 2 to 5 days. This isn't just an inconvenience; it’s an opportunity cost. While they hold your money, they earn interest on it.

The Reality: Slow settlement is a hidden fee. If you need that cash for inventory or payroll, you might end up taking a loan or using a line of credit, adding even more interest costs.

The Larecoin.ai Fix: Larecoin offers near-instant settlement. When a customer pays in LUSD (Larecoin’s stablecoin), the funds are in your self-custody wallet within seconds. No waiting for bank batches. No "settlement periods." Your capital is yours to use immediately. This is the definition of merchant freedom.

5. Paying for Chargeback Vulnerability

The legacy system is built on "pull" payments. A customer (or a fraudster) can pull money back out of your account weeks after a sale. You get hit with the lost revenue plus a $25–$50 chargeback fee.

The Reality: Interchange fees actually include a "risk premium" to cover these chargebacks. You're paying for other people's fraud every single day.

The Larecoin.ai Fix: Crypto payments are "push" payments. Once the transaction is confirmed on the blockchain, it’s final. To solve the trust gap, Larecoin uses NFT Receipts. Every transaction generates an immutable NFT that acts as a digital proof of purchase. This eliminates "friendly fraud" and protects your bottom line. Compared to platforms like NOWPayments or CoinPayments, Larecoin’s NFT receipt system provides a level of security and branding that traditional crypto gateways simply can't match.

6. Getting Gouged on Cross-Border FX Fees

If you have international customers, the banks are laughing all the way to the... well, the bank. They charge an interchange fee, a cross-border fee, and then hide a 1–3% spread in the currency exchange rate.

The Reality: You can lose up to 7% on a single international transaction. For a global business, this is unsustainable.

The Larecoin.ai Fix: Larecoin is borderless by design. Whether your customer is in New York or Nairobi, the fee is the same: just the network gas. By using LUSD, you avoid the volatility of the crypto market while bypassing the FX gouging of the legacy banking system. We are the premier NOWPayments alternative for merchants who want real global scale without the global fees.

7. Giving Up Control with Custodial Accounts

Many "modern" crypto processors like CoinPayments still act like banks. They hold your private keys and your funds. If they decide to freeze your account or if they get hacked, your money is gone.

The Reality: If you don't own the keys, you don't own the coins. You’ve just traded a traditional bank for a crypto bank with less regulation.

The Larecoin.ai Fix: Larecoin is built for self-custody. We provide the infrastructure (the merchant portal, the AI optimization, the POS), but you hold the keys. Your funds go directly from the customer to your wallet. No middleman. No "account freezes." This is decentralized commerce in its purest form.

Larecoin.ai vs. The Competition

Why choose Larecoin over NOWPayments or CoinPayments? It’s simple: Independence.

While others are focused on just being a "gateway," Larecoin is building an entire ecosystem.

• Larecoin.ai: Uses AI/ML to find the best paths for your transactions.

• NFT Receipts: Turns every sale into a marketing asset and a fraud-proof record.

• LUSD: A stablecoin designed for commerce, not just speculation.

• Self-Custody: Total control over your revenue from day one.

We are currently in the middle of our 100-post Larecoin marathon, proving hour by hour that the old way of doing business is dead.

Stop the Fee Madness Today

Every day you wait is another day you're paying a "middleman tax." You're working too hard to let 3% of your gross revenue disappear into the pockets of legacy bankers.

Join the future of finance. Switch to Larecoin.ai and take back your margins.

Ready to get started?

• Explore our Merchant Solutions.

• Join the conversation in our Community Forum.

• Check out our Sitemap for more guides on reducing fees.

The Larecoin Mission: To provide merchants with the smartest, fastest, and most decentralized payment tools on the planet. Don't settle for less. Don't pay for padding. Choose Larecoin.