When a transaction is settled at a more expensive interchange category than the best available, usually from missing data or a delayed batch. Consistent downgrades inflate your effective rate.
Why it matters for your business
Terms like Interchange downgrade aren't just jargon — they sit behind what you actually pay to accept payments. Understanding them is the difference between reading your statement and being at the mercy of it. If you're not sure how this shows up in your own costs, the fastest way to find out is to have someone read your statement line by line.
See what you're really paying →Related — Money Movement