Basis Points are the Basis for Charges.

A basis point is one-hundredth of a percentage point (0.01%), and it’s the basis for credit card processing pricing. For example, an interchange pass through quote of 25 basis points means the processor’s fee will be 0.25% of your business’s total Visa, MasterCard and Discover processing volume.

Interchange fees are also expressed as basis points. For example, Visa’s swiped consumer interchange fee is currently 1.51%, or 151 basis points