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• The Fifth Anniversary of Reward Card Interchange

  • Merchant Rates
  • Payment Industry

  January 22, 2010

  Reward credit cards are used by card companies to compete with one another for the business of affluent consumers. Card issuers attempt to influence the purchase behaviors of cardholders with higher spending limits by rewarding them to spend more at merchant locations. And by most accounts they have been successful.

  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

• Debit Network Fee Updates

  • Credit Card News
  • Merchant Rates
  • Payment Industry

  January 12, 2010

  NYCE and CU24 PIN debit networks have announced modifications to the current rates. 

  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

• April 2010 Interchange Adjustments

  • Credit Card News
  • Merchant Rates
  • Payment Industry

  January 11, 2010

  MasterCard and Visa have announced New April 2010 Interchange adjustments. 

  MasterCard

  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

by Ty Hardison

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