New Delhi, Jan. 30 -- It is essential for every credit card user to understand various fees to ensure cost-effective use. Credit card swipe charges, also known as interchange fees, are one such fee, which is charged every time a transaction is made through a credit card.

The card network determines this fee. It covers several costs, such as operational expenses, fraud prevention, and maintenance of the payment infrastructure to ensure hassle-free and secure financial transactions between merchants, banks, and customers.

- Whenever a credit card is swiped at a Point of Sale (POS) machine, a fee is charged.

- When you swipe a credit card, the merchant POS terminal verifies the card information.

- This information goes through the paymen...