# 

Background on what a card payment costs and why. Nothing here changes how you
call the API, but two or three request fields move the number.

## The networks

Visa, Mastercard, Amex and Discover operate the rails between the merchant's bank
and the cardholder's bank. They set the rules and the interchange rates; they do
not issue most cards or hold most accounts.

`payment_method.card_brand` on a response names which one handled a transaction.

## Where the fee goes

A merchant discount rate splits three ways:

| Part | Goes to | Roughly |
|  --- | --- | --- |
| **Interchange** | The issuing bank | The largest share |
| **Network assessment** | Visa, Mastercard and so on | Small |
| **Processor and gateway margin** | The acquirer, processor, and us | The remainder |


Interchange is not negotiable — it is published by the networks and is the same
for every merchant in a given category. What a merchant negotiates is the third
part.

## What moves interchange

Rates vary by card type, merchant category, and how much data accompanies the
transaction. A few things in your request affect it:

* **The billing address.** Sending `billing_address` lets AVS run. A
card-not-present transaction without address verification is priced as riskier.
* **Card type.** A rewards or corporate card carries a higher rate than a plain
debit card. You do not control which card a customer presents.
* **Stored-credential flags.** Marking a recurring payment correctly with
`initiator` and `recurring_details` is what keeps it priced as recurring rather
than as an unqualified transaction. See
[Recurring payments](/docs/payments/recurring-payments).
* **Settling promptly.** Authorizations settled late can downgrade. Batches close
on a schedule for this reason.


## Debit is different

Debit cards can route over debit networks rather than the credit rails, often more
cheaply. The gateway certifies card-not-present only today, and
**a CNP debit transaction routes as credit**.

## Next steps

* [How card payments work](/docs/concepts/how-card-payments-work)
* [AVS and CVV](/docs/concepts/avs-and-cvv)
* [Batches and settlement](/docs/after-the-payment/batches-and-settlement)