Interchange fees have evolved over the years to be priced at the transaction level depending on factors such as a merchant's industry category, the card product accepted (credit, debit, rewards, commercial, prepaid, etc.) and the method of acceptance (think card present or card not present). In addition to other nuances, special rates where also introduced for small ticket transactions less than $15.
However as a result of new government regulations impacting debit cards starting October 1, merchants accepting small ticket debit transactions are likely to experience higher rates.
MasterCard, Visa and Discover have all opted to support a two tiered debit Interchange pricing schedule for Fed regulated and exempt debit transactions. Yet in implementing the regulations, as discussed in … more