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

Interchange fees are the silent killers of retail margins. You work hard for every sale. Then, the banks take their cut. Usually, it’s 2% to 3%. Sometimes more. It feels like a tax on your own success.

Most merchants accept this as the "cost of doing business." It isn't. It’s an outdated relic of the 1970s banking system. In 2026, those fees are optional. If you’re still paying them, you’re making mistakes.

Here are the top 7 mistakes merchants make with interchange fees and the Larecoin fix to stop the bleed.

1. You Aren’t Auditing Your Processing Statements

Most merchants look at the bottom line of their monthly statement. They see a big number labeled "Fees" and pay it. This is a massive mistake.

Traditional processors hide surcharges in complex jargon. They hope you don't look closer. You need to know exactly what you’re paying for. Is it a "qualified" rate? An "assessment"? A "pass-through"?

The Fix: Switch to a transparent ledger. Larecoin utilizes the Solana blockchain. Every transaction is public, verifiable, and permanent. No hidden "adjustment fees" at the end of the month. What you see is what you get.

2. You’re Using a Bank Instead of a Web3 Processor

Banks are the most expensive way to move money. They have high overhead and legacy infrastructure. They charge you for the privilege of holding your own cash.

Banks typically charge higher interchange fees than independent processors. It’s a consistent pattern across the industry. If you process through your local bank, you’re likely overpaying by at least 1%.

The Fix: Move to Web3 global payments. Larecoin removes the bank entirely. By using $LARE or LUSD, you settle peer-to-peer. No middlemen. No bank-mandated interchange fees.

3. Misclassifying Your Transactions

In the credit card world, how you take a payment matters. If you "key-in" a card that should have been "chipped," your fee jumps. A retail store processing $100k a month can lose $1,500 just because of miscoding.

The system is designed to penalize you for minor errors. It’s rigged.

The Fix: Crypto doesn't have "tiers." A transaction is a transaction. Whether it’s an online checkout or an in-person scan, Larecoin transactions are processed the same way. Gas-only transfers ensure your costs stay low, regardless of how the customer pays.

4. Failing to Collect Full Payment Data

Traditional processors demand CVV, full addresses, and zip codes. If one digit is missing, you get bumped into a higher interchange bracket. They call it "risk management." We call it a fee grab.

The Fix: Use NFT receipts. When a customer pays with Larecoin, the transaction data is minted directly to the blockchain. You get all the information you need for accounting without the threat of "downgrade" fees. It’s secure, automated, and costs you nothing extra.

5. You’re Accepting Slow Settlement Times

Why does it take 3 to 5 days to get your money? The banks claim it’s for "security." In reality, they are earning interest on your funds while they sit in "pending" status.

Delayed settlement can also trigger transaction downgrades. If you don't settle the same day, your interchange fee can actually increase.

The Fix: Instant settlement with LUSD. Larecoin’s stablecoin version allows for immediate liquidity. You don't wait for a bank to clear the funds. The moment the customer clicks "send," the value is in your self-custody wallet.

6. Ignoring Level II and Level III Data

For B2B merchants, omitting extra data like sales tax and accounting codes is a huge mistake. Providing this data can lower your interchange rates. But entering it manually is a nightmare. Most merchants just skip it and pay the higher rate.

The Fix: Larecoin’s Web3 infrastructure handles metadata natively. You can attach any required accounting codes directly to the transaction on the Solana network.

7. Using Custodial Processors (The "Middleman" Trap)

Many merchants think they are being "innovative" by using processors like NOWPayments or CoinPayments. While these are better than banks, they are still middlemen. They hold your keys. They control your payouts. They charge their own percentage on top of the network fees.

If you don't hold the keys, you don't own the money.

The Fix: Self-custody with Larecoin. We provide the tools, but you hold the keys. You keep 100% of the payment (minus a tiny Solana gas fee). No withdrawal fees. No "processing" percentages. Just pure merchant freedom.

Larecoin vs. The Competition

Let’s look at the numbers.

NOWPayments and CoinPayments are yesterday’s tech. They are trying to bridge the old world with the new, but they’re bringing the old world’s fees with them. Larecoin is built for the future.

The Solana Advantage

Larecoin lives on Solana. Why? Speed and cost. While other chains struggle with $20 gas fees, Solana transactions cost fractions of a cent.

This makes Web3 global payments viable for everyday items. Buying a coffee? Use Larecoin. Buying a car? Use Larecoin. The interchange fee is gone. The middleman is gone.

How to Get Started

Stop making these 7 mistakes. You can start saving on fees today.

1. Get a Solana Wallet: Ensure it supports self-custody (like Phantom or Solflare).

2. Acquire $LARE: You can swap for Larecoin on Raydium.

3. Integrate Larecoin: Use our merchant tools to start accepting LUSD and $LARE.

4. Mint NFT Receipts: Automate your record-keeping and provide your customers with a futuristic proof-of-purchase.

Check out our sitemap for more guides on how to optimize your payment stack.

Join the Revolution

The Larecoin hourly blog marathon is in full swing. We are documenting the fall of TradFi and the rise of decentralized commerce. Don’t be the merchant still paying 3% in 2027.

Upgrade your business. Protect your margins. Claim your independence.

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Stop paying interchange fees. Start using Larecoin.