Which payment method is likely to incur lower interchange fees on Stripe?

Debit cards are likely to incur lower interchange fees on Stripe because they typically have a different fee structure compared to credit cards. Interchange fees are the costs charged by banks to process card payments, and these fees are often lower for debit transactions. This is primarily due to the fact that debit cards are linked directly to a bank account, leading to lower risk for the processors and issuers involved in the transaction.

In many cases, credit card transactions, particularly those associated with rewards programs or international cards, have higher interchange fees because of the added risks and complexities involved, including fraud prevention and currency conversion. This makes debit cards a cost-effective option for businesses looking to reduce their overall transaction fees.