Visa/Mastercard Interchange Rate Changes
Visa and Mastercard have an “Interchange Board” that meets at least once a year to set new rates for different types of credit and debit transactions. In April, they set new rates for many of their transaction types. You have received a couple of statements since those changes which makes now the perfect time to study your rates. These rate changes are applied to all processors so many processors have increased rates for their merchants to make up for any transaction types that had rates increased.
How can you tell if your rates have increased?
Many processors will have a “fine print” section on the front page of each statement that serves as a notice for any rate changes that they will be applying to your merchant account. Any rates changes will often be listed in this “fine print” section on March’s statement so that you know the increase is coming for April. Most merchants don’t read that section because the information usually seems irrelevant to them and that is why most merchants don’t even realize that their rates have been increased. You most likely had your rates increased if you are in a tiered pricing structure. If you are in an interchange pricing structure, you will see all of the rates changes. That means you will actually get certain rates lowered because some categories were decreased in April.
As always, if all of this sounds a little too complicated for you, feel free to give us a call and have us do a free analysis of your statement to let you know if your rates have been increased.
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