From on-demand delivery marketplaces helping their couriers pay for orders to B2B SaaS companies allowing customers to access their earnings, platforms must figure out how to move money.

However, many platforms are still following manual processes that slow down payouts.
Depending on the industry, some businesses mail paper checks, send money via ACH, or integrate with various point of sale systems.

Issuing cards is a better way to give customers immediate access to funds. And, as an added benefit, you also have the opportunity to create a new revenue stream. Every time a cardholder makes a purchase with a card issued through your card program, you can earn money by keeping a portion of interchange (a cost that accompanies every card transaction).

This guide helps you understand the basics of interchange revenue. You’ll learn how interchange is calculated, how platforms can make money from interchange, and how Stripe can help.

Payment fundamentals

Before diving into interchange, it’s helpful to have a high-level understanding of how payments work: how money moves from a customer to your business and how banks facilitate these payments. Learning about these fundamental building blocks will help you better understand the costs involved in this system and the opportunities for your business to increase revenue.

There are several major players involved in each transaction: