Your business pays for cardholder rewards:

KC Payment Your business pays for cardholder rewards

Banks pass the cost of their cardholder reward programs to your business by charging higher interchange fees on reward-based cards. Businesses pay banks more to accept a reward card than a non-reward card. These increased fees are used by banks to subsidize the cash-back, airline miles, and various other reward programs that incentivize cardholders to use their credit card.

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Basis Points are the Basis for Charges.

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Credit Card Processing Cost Calculators are Hypothetical at best,