Hybrid and Interchange fee: Difference between pages

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1.
''Payments - cards - charges.''


Hybrid is a term used to describe a financial instrument which displays characteristics of both debt and equity.
Interchange fees or charges relate to credit cards, debit cards, and other cards.


Such instruments might be designed to be an intermediate (or mezzanine) category of capital between equity and debt, or to have some of the risk absorbing characteristics of equity and, ideally, the tax efficiency of debt.
Interchange charges are levied by the merchant acquiring company (normally a bank or other financial institution that "buys” the transactions from the retailer at a discount).  


These are 'hybrid' financial instruments.
They include transaction fees for debit cards and turnover fees for credit cards charged by the card acquirer that processes card payments on behalf of the retailer.  


 
Interchange charges are often negotiable and depend on the volumes of transactions, the average transaction size, the method of processing and the credit quality of the transactions.  
2. ''Tax''.
 
The term 'hybrid' can also refer to an entity which is treated differently for tax purposes in different tax jurisdictions.
 
 
3. ''Green finance - greener technology''.
 
The use - in a single system - of both traditional and greener technologies.
 
For example, vehicles that can run either on electric batteries or more traditional fuels such as petrol or diesel.
 
 
4.
 
More broadly, any structure, instrument or entity with mixed, or intermediate, characteristics between two or more other, simpler or standardised structures.
 
 
:<span style="color:#4B0082">'''''Intra-day net settlement'''''</span>
 
:"There are two basic ways that domestic clearing systems settle:
 
 
:* end-of-period net settlement; and
:* real-time gross settlement.
 
 
:A third option is a hybrid of these two: intra-day net settlement. This is practised by a number of systems, such as the US Clearing House Inter-bank Payment System (CHIPS) and the Faster Payments Scheme in the UK."
 
:''Payments and payment systems - the Treasurer's Wiki.''
 
 
The term 'hybrid' originates from horticulture and farming, where hybrid plants and animals are a biological cross between two different species or breeds.




== See also ==
== See also ==
* [[Clearing House Interbank Payment System]]
* [[Acquirer]]
* [[Convertible debt]]
* [[Credit]]
* [[Faster Payments Service]]
* [[Credit card]]
* [[Green finance]]
* [[Debit card]]
* [[Hybrid debt]]
* [[Emerging Payments Association]]
* [[Hybrid capital]]
* [[Pay]]
* [[Hybrid clearing and settlement systems]]
* [[Payment]]
* [[Hybrid cloud]]
* [[Hybrid entity]]
* [[Hybrid mismatch arrangement]]
* [[Hybrid pension scheme]]
* [[Mezzanine]]
* [[Payments and payment systems]]
* [[Payments and payment systems]]
* [[Preference shares]]
* [[PSOR]]
* [[Settlement]]
* [[Receipt]]
* [[The Ten Point Plan for a Green Industrial Revolution]]
* [[Remittance]]
* [[Warrant]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Long_term_funding]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 03:29, 23 June 2021

Payments - cards - charges.

Interchange fees or charges relate to credit cards, debit cards, and other cards.

Interchange charges are levied by the merchant acquiring company (normally a bank or other financial institution that "buys” the transactions from the retailer at a discount).

They include transaction fees for debit cards and turnover fees for credit cards charged by the card acquirer that processes card payments on behalf of the retailer.

Interchange charges are often negotiable and depend on the volumes of transactions, the average transaction size, the method of processing and the credit quality of the transactions.


See also

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