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How are Interchange Fees Calculated?

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Card networks must maintain them properly and pay for fraud prevention tech (data encryption, tokenization, real-time tracking, etc.). To improve the payment experience for consumers, card networks must innovate and incorporate the latest technologies. Swipe fees fund these initiatives and cover the maintenance costs.

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How To Find the Best Payment Gateway for Your Business in 2025

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Overall, the payment gateway acts as a secure bridge that encrypts sensitive data, such as credit card details, to ensure the transaction is processed safely and efficiently. Strong encryption builds trust with customers and reduces the risk of data breaches.

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What Is Data Tokenization and How Does It Work?

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Moreover, companies need to follow data privacy and compliance requirements to stay in business. There are various methods of enforcing data security, such as data masking, encryption, authentication, and data tokenization. The resulting token is essentially a proxy and has no real value.

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Would My Business Benefit From Using A Contactless Virtual Terminal?

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Every business operates differently, but the one thing they all have in common is that every business accepts payments. New payment tools like NFC contactless payments that help your business grow and provide a high-quality customer experience are in high demand. Learn More What Is a Contactless Virtual Terminal?