Immediately switch to an Interchange pass-through pricing plan. For example, effective October 2010, Visa will extend Small Ticket Interchange to most merchants. This is an effective reduction in the overall Interchange costs for most merchants. However, few merchants will benefit since there is no difference between a transaction over or under $15 in their current merchant account contract. In fact this is just one example. Most merchants are … more
Contents tagged with Merchant Rates
Visa Signature Debit
Fee Program Current Fee April 2010 Fee
CPS Retail Debit 1.03% + $0.15 0.95% + $0.20
CPS Supermarket Debit 1.03% + $0.15 ($0.35 max) 0.95% + $0.20 ($0.35 max)
CPS Service Station Debit 0.70% + $0.17 ($0.95 max) 0.75% + $0.17 ($0.95 max)
CPS Automated Fuel Dispenser Debit 0.70% + $0.17 ($0.95 max) 0.75% + $0.17 ($0.95 max)
Interlink PIN Debit
Visa has announced changes in the pricing for Interlink debit transactions.
Fee … more
Effective October 2010, Small Ticket Interchange will be extended to most merchant category codes (MCCs). Current Small Ticket Interchange applies to transactions less than $15. The current Visa Small Ticket Credit Interchange is 1.65% + $0.04 and the Visa Small Ticket Debit Interchange is 1.55% + $0.04.
This is an effective reduction in the overall Interchange costs for most merchant categories. However, … more
Setting a Return Policy
Refund Best Practices
Handling Refund related Chargebacks
Beware of Refund Scams
Lower costs with Credit Voucher Interchange
Setting a Return Policy
A good return policy can help close sales. Your return policy or lack thereof can justify higher or lower cost as reflected by higher or lower risk of buying from you in the mind of your customer. Your return policy can even define your brand - think Nordstrom.
Handling refund requests in a way that makes good business sense and … more
This spring marks the 5th anniversary of rewards Interchange. The decision to implement a higher rate for a rewards card verses a non-rewards card was introduced in response to a growing American Express market share. The competitive landscape in 2005 found MasterCard and Visa card issuers increasingly using rewards as a key component of their cardholder acquisition strategies in order to compete with AmEx for affluent consumers.
So in April 2005, both MasterCard and Visa … more
Effective February 1, 2010 NYCE will implement the following changes:
The switch fee will be decreased from $0.05 to $0.0425.
Retail merchants will be billed at 0.75% + $0.2125 per transaction. The minimum transaction fee will be decreased to $0.3025.
Quick Service Restaurant merchants will be billed at 0.55% + $0.1075 per transaction with a maximum fee of $0.5425. The minimum transaction fee will be decreased to $0.2275.
Supermarket merchants will be decreased to $0.3025.
Petroleum merchants will be billed at 0.85% + $0.1925 per transaction. The minimum transaction fee will be decreased to $0.3025.
Returns will be decreased to $0.0425 per transaction.
PINless … more
Currently, MasterCard's Assessment fee is 0.095%. MasterCard will increase the Assessment fee to 0.110%.
While new rates have not yet been announced, MasterCard is introducing new Interregional Interchange programs for:
MasterCard World Card
MasterCard World Elite
World MasterCard for Business
MasterCard Corporate World
World Elite MasterCard Business
MasterCard Corporate World Elite
Effective April 2010, MasterCard is revising the qualification criteria for Commercial Face to Face and Commercial Data Rate II. Zero will no longer be accepted as a valid tax value to qualify for these Interchange rate categories. If a commercial transaction has no sales tax, the … more
The Salvation Army is smart to provider donors with the convenience of more payment options including Visa, MasterCard and American Express card transactions. Realizing that many people don't carry cash, the Salvation Army kettles are adjusting to the changing payment choices consumers are making.
The Salvation Army has deployed card acceptance to:
Increase overall red kettle donations
Eliminate "not carrying any cash" as an excuse for not giving … more
In general consumer spending has shifted from credit to debit during the recession. In the third quarter of 2009, credit transactions for Visa and MasterCard reached $313 billion, an 11.58% decline over the same quarter in 2008, according to TowerGroup. Debit transaction volume for Visa and MasterCard was $303 billion, a 5.21% … more
There was no clear winner in the GAO report. Each proposed remedy to lower Interchange examined by the GAO would impact stakeholders differently, for example, merchants verse card issuers or large merchants versus small merchants or large issuers vs. community banks. One of the most important stakeholders to the politicians are the consumers and the GAO suggested that savings from lower Interchange would not be pass along in every industry and only in competitive markets. The GAO study … more