April 2012 Interchange Modifications Impact B2B and Small Ticket


Update 3/3/2011: MasterCard is creating new small ticket Interchange charge types as discussed below but NOT introducing new rates. MasterCard is implementing these new buckets for small ticket likely so they can track the volume separately from other regulated debit transactions. We expect that companies like USA Tech will continue to opt out of accepting MasterCard debit until they lower the small ticket debit Interchange rate.

Vantage Card Services specializes in providing card payment processing services at direct and transparent Interchange pricing to merchants and businesses of all sizes.

For our B2B and B2G clients, VantageB2B.com is a resource focused on the payment acceptance policies, strategies and best practices to lower cost, increase productivity and enhance security. An integral part of our service is helping our clients manage Interchange qualifications when accepting commercial card payments. Given this B2B processing focus, we are particularly engaged with the recently announced Interchange modifications by Visa to become effective April 2012. We work with clients daily to establish and manage Level 3 merchant services. A significant number of Interchange modifications have been announced impacting Visa commercial card rates.

  • Visa will make changes to their existing Corporate Card Level 3 and Corporate Electronic with Data Interchange programs.
  • Visa will implement a new P-card product and associated Interchange Fee programs that will be available to commercial card issuers in the U.S.
  • Visa is making changes to existing Interchange rates in their business, corporate, commercial and purchasing card categories as well with the most significant change coming for the Purchasing Card Large Ticket category that today requires a Visa registration fee.
  • Visa will separate its non-regulated Business debit card from Business credit programs.

Another interesting and potentially significant change was announced from MasterCard. MasterCard will introduce new Regulated debit small ticket debit and credit Interchange programs in April 2012. While we don’t yet know the specific details, for companies like USA Technologies this is a welcome development.

Vantage is home to world-class payment solutions and features the best value package of price, terms, service, solutions and incentives available in the payments industry. For more information, follow Interchange developments as they happen here.

by Ty Hardison

Share this Post

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

See Your Merchant
Interchange Rates