Why Understanding Interchange Fees Helps Explain Processing Cost Differences

If you’ve ever wondered why your favourite Spanish casino or online betting site charges different processing fees depending on how you deposit money, the answer lies in something most players never think about: interchange fees. These hidden charges are the real reason why paying with a credit card sometimes costs more than using a debit card, or why certain payment methods simply aren’t available at your preferred platform. We’re breaking down how interchange fees work, why they matter for your wallet, and how they shape the payment landscape at gaming sites across Spain and beyond.

What Are Interchange Fees?

Interchange fees are the charges that banks and card issuers levy on payment processors every single time you use a card to make a transaction. Think of them as a commission that sits between you and the merchant, in this case, the casino or betting site you’re using.

Here’s the basic flow: When you swipe your card, the acquiring bank (the casino’s bank) pays your card issuer (your bank) a percentage of the transaction amount, plus a flat fee. This percentage typically ranges from 0.5% to 2% depending on the card type and region.

In the UK and EU, interchange fees are regulated by law. Since 2015, the European Commission capped credit card interchange at 0.3% and debit card interchange at 0.2%. But, Spain and other member states have some flexibility within these limits, and premium or business cards may fall under different categories.

The key point: casinos don’t absorb these fees, they pass them along to players through processing charges, surcharges, or built into their payment methods’ availability.

How Interchange Fees Affect Merchant Costs

Merchants, including online casinos, don’t just deal with interchange fees. There’s a whole ecosystem of costs involved in processing payments.

When a casino accepts your deposit, here’s what actually happens:

• Your bank’s interchange fee is paid to your card issuer
• The acquiring bank (casino’s bank) takes its cut
• Payment processors (third-party companies handling the transaction) charge a percentage or flat fee
• Chargeback reserves are sometimes held, in case disputes arise
• Fraud detection services and PCI compliance costs add up

All told, a casino might pay anywhere from 2.5% to 4% of your transaction just to process your deposit. On a €100 deposit, that’s €2.50 to €4.00 lost to processing before the casino ever sees a profit.

To stay competitive, casinos either absorb these costs (eating into their margins) or they offset them by offering lower welcome bonuses, charging withdrawal fees, or offering better rates for certain payment methods that cost them less.

Why Processing Costs Vary Across Payment Methods

This is where things get interesting. Not all payment methods cost casinos the same amount to process.

Credit Cards Versus Debit Cards

Credit cards have higher interchange fees than debit cards. A credit card deposit might cost a casino 1.5–2%, while a debit card costs only 0.8–1.2%. This is because credit card companies see higher risk, you’re borrowing money, not spending your own. Banks need to protect themselves from chargebacks and fraud.

Because of this cost difference, Spanish casinos often incentivise debit card payments with faster processing or lower fees. If you’re depositing via credit card, you might face a 2–3% surcharge. It’s not the casino being greedy: they’re simply passing along the burden that your bank imposed.

Digital Wallets And Alternative Payments

PayPal, Skrill, and Neteller often have fixed interchange agreements with casinos, sometimes negotiated to 1% or less. Why? Because they’re efficient, have lower chargeback rates, and handle fraud detection on their end.

Cryptocurrency and bank transfers sit even lower in terms of cost, sometimes 0.5% or flat fees of €1–2. This is why some players get cashback or reduced fees when using crypto or direct bank transfers. The casino saves money and can afford to share those savings with you.

Here’s a quick breakdown:

Spanish players who understand this structure can make smarter choices about where to deposit and when.

Interchange Fees In The Gaming And Betting Sector

Gaming sites face unique regulatory and operational pressures that amplify the impact of interchange fees.

First, chargeback rates in the gaming industry are notoriously high, sometimes 2–5% of all transactions. This is because players dispute charges more frequently than in other industries (claiming they didn’t authorise a deposit, for example). Because of this elevated risk, payment processors and banks charge gaming merchants premium interchange rates, sometimes 0.5–1% higher than standard merchants.

Second, many traditional banks and payment networks actively discourage or outright ban gambling merchants. Visa and Mastercard have strict rules about who can process gambling payments. This limits a casino’s options and forces them to work with specialised payment processors that charge higher fees in exchange for their willingness to work with gaming sites.

Third, UK and Spanish gambling regulations require additional compliance checks, age verification, and anti-money laundering (AML) procedures. Each of these adds operational cost, which gets factored into processing fees.

For players, this means:

• Casinos licensed in the UK or Spain will generally charge higher processing fees than unlicensed alternatives
• Premium or VIP accounts at casinos might get better rates because they’re deemed lower-risk
• Some casinos on a non GamStop casino site may advertise “no processing fees,” but they typically compensate through tighter odds, lower bonuses, or slower withdrawals

If you’re comparing Spanish casinos and wondering why one charges for deposits whilst another doesn’t, interchange fees and regulatory compliance are almost certainly the reason. Learn more about UK online casino not on GamStop.