Archives

Archives / 2010 / February
  • No Interchange reform legislation in 2010

    House Financial Services Committee Chairman Barney Frank announced his committee would not take up Interchange legislation this year.   However there are steps that small businesses, family-owned restaurants, local retailers and service providers can take to help themselves without waiting on the government.

    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

  • Strategy to Advance Contactless

    In an article on Digital Transactions “Could Visa’s New No-Signature Rule Hurt Contactless Payments?” it was argued that Visa’s expansion of its policy to no longer require signatures for transactions less than $25 for most U.S. merchants would undermine contactless payments.

    In our blog post Visa Changes Debit Debate, Backs Contactless, we suggested that extending Visa's No Signature Required (NSR) program (on transactions <$25) to most merchants (along with converging signature and PIN debit rates and expanding small ticket Interchange on transactions <$15) were policies that supported contactless payments.

    Changing ingrained behavior takes time and doing it in steps makes sense.  Step one, training merchants and … more

  • Visa Changes Debit Debate, Backs Contactless

    Visa changes the signature vs. PIN debit debate with policies to support contactless payments. 

    In an interview in the June/July 2009 issue of Cards&Payments magazine, Ellen Richey, global head of enterprise risk for Visa, discussed the adoption of chip technology to make purchases more secure. Richey said “the U.S is not going to be adopting a chip-and-PIN credit card or debit card any time in the very near future” suggesting that in the U.S., the deployment of a contactless-chip card network may not include a PIN component.

    In October 2009, Best Buy announced that it would discontinue it’s acceptance of Visa contactless payment cards. Why?  Best Buy reportedly took issue that Visa contactless lacked the option of PIN acceptance, while payment industry … more

  • Visa's Debit Rates Converge

    Visa has announced additional changes for April 2010.  Visa will adjust the following U.S. Visa Debit Interchange reimbursement fees.  The significance here is that for many merchants the underlying Interchange costs for accepting a Visa signature debit (check card) will be the same as accepting a PIN debit transaction. 

    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

  • Visa extends Small Ticket Interchange to more Merchants

    Visa has announced additions to the CPS/Small Ticket Interchange Program, currently available to Local Commuter Transport, Taxicabs and Limousine, Restaurants, Fast Food Restaurants, Parking Lots and Garages, Motion Picture Theaters, Video Rental Stores, Bus Lines, Tolls and Bridge Fees, News Dealers, Laundries, Dry Cleaners, Quick Copy, Car Wash and Service Stations.

    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

  • The Essential Merchant Guide to Card Payment Refunds

    Buyers need not only an understanding of the benefits and value of what you are selling, they also need clearly stated billing, return, shipping and other policies important in their decision making process. This guide will focus on the essentials of a card payment refund policy:

    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

by Ty Hardison

Share this Post

Share to Facebook Share to Twitter Share to Google+ Share to LinkedIn More...



See Your Merchant
Interchange Rates

$
$