Updated on June 12, 2025
Businesses choosing payment options often compare the cost of interchange fees with the benefits of virtual-card rebates. These decisions can affect profits when working with suppliers, vendors, and customers.
Understanding the key statistics behind virtual-card rebates versus interchange fees helps businesses find ways to save money and increase revenue. With changing payment trends, knowing how rebates and fees work is crucial. For a breakdown of the current rates and what they mean for companies, see this overview on virtual cards, interchange fees, and rebates.
Virtual cards also have higher fees than typical credit and debit cards, which businesses should consider before making changes to their payment process. More details on the hidden costs can be found in this article on the hidden cost of virtual cards.
Most businesses pay an average interchange fee of 1.65% on every virtual card transaction. This is noticeably higher than standard credit card interchange rates.
Higher fees for virtual cards mainly apply to platforms like Visa and MasterCard. For comparison, physical debit card transactions usually have a much lower rate. See more details on the hidden cost of virtual cards.
A full breakdown of current interchange rates in the USA explains these differences for various payment types.
In regulated markets like the European Union, interchange fees for standard credit cards are typically capped between 0.2% and 0.3%. This cap impacts card costs for businesses and helps control the cost of accepting payments according to CGAA.
U.S. businesses may face higher average interchange costs, which can affect bottom lines. For more details on U.S. and international credit card fee structures, visit the article on average interchange fee.
Businesses that use virtual cards often get rebates, which means a part of the interchange fees is returned to them. This creates a direct financial benefit for companies handling large volumes of payments.
For example, receiving 1 percent cash back on virtual card payments can result in $10,000 back on every $1 million spent, as explained in virtual card rebates: how they can save your business money. Companies interested in more about virtual cards can read virtual cards interchange fees and rebates.
Some virtual card issuers offer rebates to businesses, returning a portion of the interchange fees charged on payments. This approach provides an extra income stream for companies that use virtual card payments for vendors or suppliers.
For example, virtual card rebates for businesses can supplement revenue when using cards for travel or purchasing. Virtual cards can also streamline payment processing and reporting compared to traditional company cards.
Traditional interchange fees are charged on every credit or debit card payment. These fees include a variable percentage of the transaction amount plus a fixed fee per transaction.
The percentage rate and fixed amount can vary by card type, transaction method, and industry. For example, some businesses may pay about 1.5% plus $0.10 for each transaction, as explained by merchant services update on interchange fees.
Businesses can explore how these charges compare to interchange vs assessments to better manage processing costs.
Virtual card payments require businesses to pay several types of fees. These include interchange fees, scheme fees, and merchant service or markup fees. Each one adds to the cost every time a virtual card is used.
The total expense is often higher than regular credit cards. For a clear explanation of how these costs appear in B2B settings, see the discussion on virtual card acceptance costs.
To compare up-to-date fee rates, visit the Visa interchange rates (2025) page.
Virtual cards often come with higher transaction fees than traditional credit cards because they involve greater security checks and more steps in processing. These cards require extra verification to prevent fraud.
Businesses see these higher expenses reflected in the interchange fees and surcharging structure tied to virtual card payments. Virtual card programs also demand more from merchant processing systems, which adds to overall costs. For more details on supplier payments, virtual cards simplifying supplier payments gives further insights.
Virtual card rebates are built into the payment workflow, so businesses do not need to take extra steps to get cash back or discounts. This streamlines savings and removes manual work.
Because rebates are applied during transactions, businesses using virtual card rebates and savings benefit automatically.
This process makes it easy to track and manage spending compared to traditional rebate programs. Many companies are seeing this as an advantage over other payment methods with standard virtual cards interchange fees and rebates.
Rebate percentages on virtual card payments often fall between 0.5% and 1.0% of each transaction's value. Issuers set these rates based on factors like payment volume, merchant type, and business relationships.
Businesses can use these digital payment incentives to offset costs and improve cash flow. For more details on typical rebate rates, see the arbitrage rebate basics.
Further reading on optimizing payment programs is available at steadily.com/blog/credit-card-rewards-for-business.
Interchange fees make up a large portion of the overall expense when B2B firms handle card payments. Even a small increase in these fees can affect how much businesses pay each month for payment processing.
In the US, companies spent billions on card fees, and a majority were from interchange fees. Firms looking to control costs should review the latest interchange fee data and updates as part of their payment strategy. For more insights on virtual card rebates, see virtual-card rebate statistics.
A company’s rebate earnings depend on how many suppliers accept virtual card payments. If a supplier does not accept virtual cards, businesses miss out on potential rebates.
Businesses can improve rebate rates by expanding supplier enablement efforts. This leads to increased participation and more frequent use of virtual cards for B2B payables, as described in virtual card rebates, savings, and profits.
For more on growth in this payment segment, see virtual cards spend growth trends.
Virtual cards often come with higher interchange fees compared to other payment methods. This can increase costs for businesses handling large payment volumes.
However, many providers issue rebates that return a portion of the interchange fee to the business. These rebates help reduce the net cost paid for transactions, which is helpful for companies making frequent supplier payments.
For more details on how virtual card rebates help offset costs, visit WEX. Learn how businesses can earn rebates through virtual card spend on MineralTree.
Virtual card fees are usually higher than ACH fees. Many virtual card payments can include extra costs, but they may also return rebates to the business.
ACH processing costs are much lower, with fees often under $1 per transaction. For direct comparisons of cost ranges, see this breakdown on ACH vs. Checks vs. Virtual Cards. More payment comparison details can be found in the article’s section about ACH vs virtual card.
WEX and similar providers use rebate offers as incentives for businesses to increase virtual card payments. These rebates can simplify payment processes and contribute directly to potential savings.
Automated systems help eliminate manual paperwork, supporting efficiency. More information can be found on virtual card rebates, savings, and profits.
Virtual cards also allow organizations to capture additional value throughout their accounts payable process, making them more appealing to finance teams. Learn how virtual cards, interchange fees, and rebates work in business payments.
Virtual cards let businesses set payment limits and conditions for each transaction. This means better oversight and less risk of unauthorized spending. Each virtual card can be created for a single use or a specific vendor.
Using virtual cards can also help earn rebates on vendor payments. Companies using this method may qualify for up to a 1.5% rebate, turning regular payments into a potential revenue stream as shown in this guide to virtual card rebates.
Virtual payments add efficiency to the accounts payable process and are part of the best virtual card payment automation strategies.
Some virtual card providers give clients access to clear reports showing all fees and rebates. This makes it easier for businesses to track spending and actual savings.
Features like automated rebate calculations and reporting can help increase efficiency. For businesses comparing options, virtual card rebate platforms often highlight these tools to simplify financial management. Accurate fee and rebate reporting supports better decision-making.
Regulations in certain regions set clear standards for credit card interchange transaction fees, reducing uncertainty for businesses. These rules help prevent unexpected spikes in processing costs.
For example, some states like Illinois have new laws targeting specific fee areas, as highlighted in this state regulation of interchange fees resource. This can help companies forecast and manage their payment expenses more reliably.
Several factors decide how much a business can earn through virtual-card rebates or pay in interchange fees. Knowing exactly what drives these numbers can help companies plan for larger savings or better predict costs with every transaction.
The frequency and size of transactions play a major role in rebate earnings and interchange costs. Businesses processing many payments with high-value transactions often qualify for better rebate rates from virtual card issuers, sometimes turning card expenses into a direct revenue stream. A larger payment volume means more opportunities to receive rebates, but it can also mean higher accumulated interchange fees, depending on the agreement with the card provider.
Different card networks and issuers may offer varied rates based on monthly or yearly transaction levels. Companies making frequent payments to suppliers or vendors usually see more benefits from virtual-card rebate programs, unlike occasional users who may not meet minimum thresholds for bonus payouts. Keeping detailed track of activity with a payment management system can highlight the rebate-to-fee ratio and reveal areas for cost savings.
For detailed analysis on interchange rates, businesses can review information provided in 2023 interchange rates for Visa, MasterCard, Discover, and AmEx.
Rebate and interchange rates often differ across sectors. For example, travel agencies, hotels, and airlines tend to make large, frequent payments for bookings or services, and can benefit from custom virtual card rebates built into their payment systems. These industries sometimes receive a portion of interchange fees back as rebates, turning card payments into a form of passive income. Other industries like retail or healthcare may not see the same rebate opportunities because their payments are smaller or less frequent.
Factors such as average payment size, risk level, and preferred settlement methods impact both the fees charged and the rebates offered. B2B sectors using virtual cards may also see extra costs tied to merchant service and scheme fees; understanding this mix is key for predicting returns and expenses. More information on how B2B companies manage costs with virtual credit cards is available at rise of virtual credit cards and managing fees.
Differences in fees and rebate systems affect how much businesses spend and earn on each transaction. These changes influence both costs and the amount of money that can be kept as profit from payments.
Virtual card rebates work by returning a portion of the interchange fee to the business, which reduces total transaction costs. With regular credit cards, the interchange fee is usually collected by the card issuer. However, many virtual card programs offer rebates, creating an extra source of income for companies making large payments.
For example, using a virtual card to pay suppliers means a business might get back a set percent of the processing fee. This lowers the effective cost of each transaction. According to Pax2Pay's article on virtual card rebates, companies can expect these rebates to offset some of the higher fees that come with virtual card payments.
Still, not every business saves money. Some suppliers charge higher prices to cover the added cost of accepting virtual cards. Businesses need to compare their total savings with any extra charges or lost discounts before deciding.
The size of interchange fees and the amount of potential rebate can change a company’s profit margins. For instance, traditional online payment cards may have regulated fees, such as 0.3% for credit cards or 0.2% for debit cards in the EU. In contrast, virtual cards can have much higher fees, often up to 1.65% for major brands, as shown in this detailed review of virtual card costs.
If the rebate on a virtual card does not make up for the higher interchange rate, profit margins shrink. On the other hand, a well-negotiated rebate program can increase the net revenue from each transaction, especially for firms processing high volumes of business-to-business payments.
Companies must carefully weigh the trade-offs between higher upfront costs and potential rebates. They should also track how these decisions affect their overall financial performance, including all fees and rebates, by using expense management and payment data analytics.
Virtual card rebates let businesses earn back a portion of interchange fees on payments. Interchange fees change by card type, provider, and market regulations.
Virtual card rebates directly return a portion of the interchange fee to the payer. With average interchange fees for virtual cards at roughly 1.65% per transaction, businesses can reduce costs by getting part of this fee back. Some issuers design these rebates as a new revenue stream for businesses paying hotels, airlines, and suppliers. Find out how some virtual card issuers structure virtual card rebates.
Since 2021, Visa and Mastercard have adjusted interchange fees in response to regulatory changes and increased usage during the growth of digital payments. While some rates have increased on specific transaction types, regulated markets such as the U.S. tend to keep standard interchange fees between 0.2% and 0.3%. For further analysis, check virtual cards interchange fees and rebates.
Average debit card interchange fees vary but are typically lower than credit card fees, often between 0.2% to 0.3% for regulated cards. These fees are deducted from each debit sale, lowering profit margins for merchants. The fee applies every time a customer pays with a debit card.
Extra details can be found on debit card interchange fees and routing.
The Durbin Amendment capped debit card interchange fees for large banks, leading to lower fees per transaction in the U.S. For many standard debit sales, this dropped fees close to 0.05% plus 21 cents. Merchants who process high debit volume save money due to these caps.
For more, access the Durbin Amendment's effects on interchange.
American Express charges higher interchange fees because it operates as both a network and card issuer. This lets the company set and retain higher fees. Merchants pay more for each transaction compared to Visa and Mastercard, making American Express less attractive for businesses with tight profit margins.
Further fee comparisons can be found via virtual credit cards and managing fees.
Interchange fees go to the card-issuing banks and help cover costs of processing the payment. Merchant discount rates, however, include the interchange, plus fees from payment networks and the bank that acquires the transaction. The merchant discount rate is the full percentage the merchant pays on every sale.
There is more information about fee structures at virtual card frequently asked questions.
This post is to be used for informational purposes only and does not constitute formal legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Resolve assumes no liability for actions taken in reliance upon the information contained herein.