Contents tagged with Merchant Rates

  • Debit Card Chaos on Fed announcement

    clip_image001 Breaking Payment Industry News – Fed announces Debit Card Rates and Rules for Comment

    In a history making live webcast, the Federal Reserve Board announced proposed debit card Interchange rates and rules under the controversial Durbin amendment of the Dodd-Frank financial reform act. Noting the short time frame provided by the bill to undertake such an important and complex issue, the Fed voted unanimously to submit proposed debit rule recommendations for public comment.

    In the debate over fees, the Fed is looking for input on the provision requiring debit Interchange to be “reasonable and proportional” to the cost that card issuers incur. The Fed is proposing to two alternatives: a $0.07 safe harbor price along with a $0.12 cap or a $0.12 cap for all transactions. … more

  • Bank Challenges Constitutionality of Interchange Regulation

    As part of the Dodd-Frank financial reform bill, the Durbin Amendment mandates the Fed to regulate debit card Interchange. TCF National Bank filed a federal lawsuit alleging the Durbin Amendment is unconstitutional in violation of the Due Process Clause of the Fifth Amendment and the Equal Protection Clause of the Fourteenth Amendment.

    The Fed is to release a draft of its Interchange rules by January 2011, and issue final rules no later than March 20, 2011. The bank is seeking to stop enforcement of any Interchange rules until the case can be heard. Once the rules are established, others may also initiate lawsuits against the validity of the Amendment.

    This litigation may go on for years; with an ultimate decision likely being made in the U.S. Supreme Court. Until then, we may not see … more

  • MerchantRates wins 2010 Small Business WebAward

    WebAwards Competition

    Vantage Card Services was awarded the 2010 Small Business Standard of Excellence WebAward for its site. 

    The Web Marketing Association is the producer of the WebAward Competition.  Now in its 14th year, the WebAwards is the premier annual website award competition that names the best Web sites in 96 industries while setting the standard of excellence for all website development.  Entries were judged on design, copy writing, innovation, content, interactivity, navigation, and use of technology. provides instant merchant Interchange rate quotes and merchant applications. also provides educational resources, best practice guides and helpful frequently asked questions and answers.  more

  • Visa Adds Merchants Eligible for Small Ticket Interchange

    Visa will implement changes to expand the CPS/Small Ticket program to all MCCs, except those noted below. This expansion is intended to facilitate growth for Visa and its members through increased issuance, acceptance, and innovation.  The extension of the CPS/Small Ticket Interchange program is intended to encourage faster transaction speed and enhance cardholder satisfaction at the point of sale, providing benefits to all.

    Currently, only transactions from a specific group of merchant segments are eligible to qualify for the CPS/Small Ticket program. With this change, the CPS/Small Ticket program will be available to consumer card and commercial card transactions submitted with almost all merchant category codes (MCCs).   Current CPS/Small Ticket Interchange applies to … more

  • Visa Easy Payment Service Goes Into Effect

    Effective October 17, 2010, Visa Easy Payment Service will provide a better framework for conducting certain low value transactions less than $25 without cardholder verification or the issuance of a transaction receipt (unless requested by the cardholder). Drawing on the best features of each of the current programs and research, the Visa Easy Payment Service provides a broadened and consistent base for low value and everyday spend expansion.  Visa Easy Payment Service transaction rules will apply to all card technologies including magnetic stripe, EMV chip and Proximity Payment (contactless chip) transactions.  In addition, Visa Easy Payment Service will generally replace existing program rules, creating a consistent set of Visa International operating regulations. Redundant … more

  • Merchant Alert: Debit Interchange Regulation continues move forward

    Update:   It's Official.  The financial regulatory overhaul bill finally became law when President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act.

    Interchange regulation makes the cut as the House and Senate reconciled their differences on Senator Durbin’s amendment to the proposed Restoring American Financial Stability Act of 2010. The proposed Interchange amendment compromise must still survive a bipartisan conference committee.

    If the bill is passed, the Federal Reserve Board would gain the authority to establish rules and regulations related to the Interchange fees that issuers could earn with respect to debit card transactions. The Federal Reserve would have nine months to set Interchange fees and one would expect that they … more

  • Durbin's Interchange gets more complicated

    Senator Durbin's original Interchange amendment, inserted into the financial reform bill working its way through Congress now, would limit the amount of debit-card Interchange fees that Visa Inc. and MasterCard Inc. charge banks to what's considered "reasonable and proportional" to the processing costs involved. These Interchange fees are then passed on to merchants when they accept card payments. But as Durbin learns more about the payment system intricacies, his Interchange plan is developing on the fly and becoming more complicated.

    Durbin now wants to keep Interchange 'as is' for debit cards used by the government by carving out an exemption to his own amendment. As reported in Digital Transactions, Durbin said he would write language to exempt transactions on "government cards so … more

  • Why Visa and MasterCard Should Voluntarily Lower Interchange

    Lately I’ve read many articles about Contactless and Near Field Communication (NFC) payments, the prospects for merchant and consumer adoption, bridge technologies and market trials. Contactless payments, which feature speed, convenience, security and more functionality that leverages the mobile network, can outperform legacy mag-stripe payment technology. NFC promises smart phones as payment devices, which in turn promise to change consumer expectations about buying everything from mass transit, fast food and concert tickets, to the retail brands themselves.

    At the same time, U.S. cardholders increasingly find it difficult to use mag-stripe cards outside the U.S.  As we discussed here, the U.S. EMV strategy hinges on contactless / NFC adoption.  Some believe EMV 2.0 in … more

  • Senate Adopts Amendment to Regulate Interchange; What should merchants do now?

    The Interchange amendment to the financial reform bill, sponsored by Senator Richard Durbin (D-IL), was adopted Thursday night.  The measure gives the Federal Reserve authority to regulate Interchange fees, using a "reasonable and proportional" standard.   The amendment also allows merchants to discount lower costs payment options and allows minimum card purchases.  Once the Senate passes the financial reform measure, it will have to be reconciled with a House version that does not include the Interchange provision.

    What does this mean for U.S. merchants?  First, take a look at your most recent April merchant statement.  If you are not on a direct Interchange pass through pricing plan already then you need to take action.   Open your browser and … more

  • New Merchant Services to lower costs and earn rewards

    Merchant Rates, where ALL merchants large and small can get an Interchange rate price structure to lower their costs, has been redesigned with a new look for 2010. has also added new content. In addition to providing an instant, detailed merchant interchange rate quote calculator and guide, has created a Frequently Asked Questions resource, covering topics including:

    Merchant Interchange Q&A

    Merchant Rates Quote Q&A

    Payment Technology Q&A

    General Merchant Account Q&A

    Card Payment Rules Q&A


    Vantage Points Rewards, a client loyalty rewards and corporate giving program where a portion of the value of each award is donated to the Food Bank, has also been redesigned.

    If you are not earning rewards processing … more