Startup Takes Aim at Credit Card Companies by Eliminating Transaction Fees

One of the basic tenets of the modern financial system is that it takes money to move money. In its most basic form, that means that when you make a transaction with your debit or credit card, the processing companies, such as MasterCard, Visa or American Express, are taking some of that money for themselves – usually between 1.5% to 3%, depending on the type of transaction. The concept, called interchange, has been a thorn in the side of retailers for decades. One startup that focuses on mobile payments has achieved the dream of eliminating these transaction fees once and for all.

Interchange Zero

Boston-based LevelUp (created by SCVNGR) focuses on mobile payments for local merchants. LevelUp is an app that can be used to make payments by allowing merchants to scan QR codes tied to customer payment information. Through the app, merchants can offer loyalty programs and deals for customers.