Interchange Fee Landscape, Outlook & Trends

Interchange Fee Trends:

  • Security
    • Compliance mandates with Payment Card Industry Data Security Standards (PCI) continues its push to small level 4 merchants
  • Competition
    • Pressures from alternative payments and telcom pipes (billing to your phone bill)
  • Litigation
    • Increased legal expenses and settlement costs, produce new rules on steering payments
  • Governance
    • Federal and State Laws
    • New Fed powers under Dodd Frank financial reform
  • Technology
    • Contactless, micropayment, prepaid and other payment schemes to further eliminate paper cash and check transactions
  • Card Association Rules
    • Signature Not Required example to speed transactions
  • Pricing
    • Volume tiered & transaction size qualifications
    • Registration requirements
    • Compliance requirements
    • Government price controls