Understanding Interchange

Find out what interchange is and the value it delivers

What is interchange?

Interchange is a fee that the merchant's acquiring bank pay for the implementation of a payment transaction. This will help to compensate the card issuing bank for some of the risks and costs it incurs by maintaining accounts for cardholders. Mastercard has the right to establish standardized interchange across national borders and within a country (domestic). Mastercard uses the same approach as when interchange is determined in other parts of the world. The goal of standardized interchange is both to ensure that Mastercard cards are issued on a broad basis and that Mastercard cards are accepted on a broad base of retail outlets.

In accordance with Bank Negara Malaysia’s (BNM) Payment Card Reform Framework dated 23 December 2014, with effect from 1 July 2019, the intracountry interchange programs for Malaysia will be updated as listed in the attached tables.

The interchange rates changes will apply to all transactions that are acquired in Malaysia and initiated with MasterCard consumer and commercial Credit, Debit and Prepaid cards issued in Malaysia.

Mastercard Interchange Table

(Including GST) Bill Payment Aggregator
Government Services
All Others
Debit N/A 0.00% 0.00% 0.21%
(subject to a cap of MYR 0.55/transaction)
0.21% or MYR 0.70 + 0.01%
(whichever is lower)
Prepaid N/A 0.00% 0.00% 0.21%
(subject to a cap of MYR 0.55/transaction)
0.21% or MYR 0.70 + 0.01%
(whichever is lower)
Credit 0.40%
(subject to a cap of MYR 15.00/transaction)
0.00% 0.48% 0.675%
(subject to a cap of MYR 0.75/transaction)
(Funding & Payment)

With effect from 1 July 2017, Mastercard is introducing an interchange structure in Malaysia for business-to-business (B2B) transactions for participating acquirers and issuers in Malaysia and initiated with a qualifying commercial product issued in Malaysia. Customers who are interested may contact the location Customer Delivery lead or the local help desk.

Bill Payment Aggregator, Charities, Government Services, Petroleum – Card Acceptor Business Code (MCCs) that qualify for the respective incentive interchange rates are as follows :-

Card Acceptor Business Code (MCCs) Table

Incentive Interchange Category Name Card Acceptor Business Code (MCCs)
Bill Payment Aggregator Only Applicable to registered bill payment aggregators. For more information, contact your local Mastercard representative.
Charities 8398 - Organizations, Charitable and Social Service
8661- Organizations, Religious
Government Services 9211 - Court Costs including alimony and child support
9222 - Fines
9223 - Bail and Bond Payments
9311 - Tax Payments
9399 - Government Services – not elsewhere classified
9402 - Postal Services – Government Only
9405 - Intra-government Purchases – Government Only
Petroleum 5541 - Service Stations (with or without ancillary services)
5542 - Fuel Dispenser, automated