Merchant Account Blog & Credit Card Processing Blog

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VISA MASTERCARD INTERCHANGE INCREASE

Visa Changes ( April 2009 )

Commercial Cards
Visa is making two adjustments that will affect U.S. transactions processed under all three commercial products:

• The Level II data incentive interchange rate will be increased.
• The Standard interchange rate will be increased.

Additionally, Visa is making adjustments specific to Visa Corporate and Visa Purchasing products:

• For Visa Corporate products, Visa is reducing the Retail interchange rate and increasing the Electronic interchange rate.
• For Visa Purchasing products, Visa is increasing the Retail interchange rate, the Card Not Present interchange rate, and the Electronic interchange rate.

Changes for GSA Purchasing Card Transactions
Visa will allow GSA Purchasing Card and GSA Fleet Card transactions accepted at Non T&E* Merchant locations to be eligible for the Level 3 Interchange Rate program

• Transactions must meet the existing level 3 rate criteria to qualify
  • There are no changes to the existing Level 3 data requirements
• Today the best rate is Level 2

*T&E MCCs include: 3000-3999, 4112, 4411, 4511, 4722, 5812, 5814, 7011, and 7512

Visa will increase the existing GSA Large Ticket Rate for GSA Purchasing Card.

• Visa will delete the minimum transaction amount of $5000 and will delete the GSA Large Ticket I rate program

New Debt Repayment Fee Program

• Visa is introducing a new interchange fee program and rate for domestic debt repayment transactions
• Only transactions for collectible consumer debt on auto loans, credit card payment, mortgage payments, and student loans are allowed
• Only domestic consumer debit card transactions from the following MCC’s are eligible
  • 6012 —Financial institutions–merchandise and services
  • 6051 —Nonfinancial institutions–foreign currency, money orders (not wire transfer), and travelers cheques

New CPS/Debit Tax Payment Fee

• In the October 2002 business release, Visa announced a pilot program for U.S. federal, state, and real estate property tax payments which is scheduled to end in October 2008
• With the expiration of the tax pilot, Visa will implement a new interchange rate program for Visa consumer debit card transactions submitted by acquirers from a participating tax authority or third-party service provider accepting payments on behalf of the tax authority

MasterCard Changes ( April 2009 )

Consumer Bill Payment
Consumer Bill Payment

• Utility Rate Program Changes
  • MasterCard will no longer require the “U” code to qualify for Utility Interchange nor are they requiring registration
  • Utility (MCC 4900) consumer card qualified sales will only be eligible for the Utility Interchange rate program(s)
• MasterCard will no longer allow the Merit 3 or Service Industries break-even
• Service Industries Rate Program Changes
  • MasterCard is removing the following Merchant Categories as eligible MCCs to qualify for the Service Industries program (SIP)
• 4812 (Telecommunication Equipment/Sales)
• 5960 (Insurance - Direct Marketing)
• 6300 (Insurance Sales, Underwriting, and Premiums)
• UCAF (Full and Merchant), Merit III and Merit I Debit Program Changes
  • MasterCard is removing the following Insurance merchant categories as eligible for the UCAF (Full and Merchant), Merit I, and Merit III Consumer Debit interchange programs
• 5960 (Insurance - Direct Marketing)
• 6300 (Insurance Sales, Underwriting, and Premiums)
• MasterCard will no longer allow Real Estate (MCC 6513) to qualify for Merit III (Base) and Merchant UCAF Consumer Debit Rate programs

Chargebacks

Revised Standards for the Quick Payment Service Program

• MasterCard is requiring all QPS merchants, regardless of Merchant Category Code, to obtain full authorization in order to be chargeback protected
• The following MCC’s that previously received chargeback protection with no authorization required, will have to obtain full authorizations
  • 5814 (Fast Food Restaurants)
  • 7832 (Motion Picture Theaters)
  • 7523 (Automobile Parking Lots and Garages)

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Saving Money On Your Merchant Account Fee’s !!!!!!!!!!

Saving money on your merchant account & credit card processing fee’s has never been more simple. We have put together a program to save you hundreds, if not thousands of dollars in fees, depending on your current monthly volume. Perfect solution for any business owner looking to cut cost’s.

INTERCHANGE PLUS PRICING - Start Saving Today !!!!!

In the past, this program has been reserved for High Volume Chains, such as Wal-Mart or McDonalds. We have opened the flood gates for any business size to profit from the savings. For those of you who are not familiar with the term “Interchange”, interchange is the cost passed on by Visa & Mastercard which accounts for the majority of your transaction cost’s. Interchange consists of several hundred catagorys which any transaction could fall under. Here and links to the most recent Interchange Schedule’s for Visa and Mastercard, as you will see this is quite complicated.

To simplify matters, most merchant account’s are on a “Tiered System”, consisting of Qualified, Non-Qualified, and maybe Mid-Qualified rate. These tier’s cover any downgrades by Visa or Mastercard in which certain transactions may fall. This simplifies “Interchange”, but alway’s cost’s more in credit card processing fee’s to a merchant on the Tiered System.

BOTTOM LINE - SAVING MONEY LIKE THE BIG BOY’S !!!!!!

We are now offering “Interchange Plus Pricing” to merchants of any size. Previously reserved for large corporations, this pricing schedule will saving you money on your credit card processing fee’s and is available to any merchant account, regardless of size.

Call us immediately for a cost analysis and began saving like the big boy’s.

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Visa has announced changes in Interchange Rates, due to take effect on October 3rd, 2008. For the most part, the average merchant should not feel any pain. As most of you know, “Interchange” is a complcated mass of different catagories for different transaction types. Seems that for the most part, the major change is the addition of the following New Interchange Catagories:

Debt Repayment -This category allows agencies that take payment for auto loans, student loans and mortgages to pay a lower rate. This Interchange category does not apply to past due debt such as items in collections.

Pay at the Pump - This fee is a reduction. Consumer credit cards used at gas pumps have been lowered by as much as .50 basis points. Prepaid gas cards will also now be to “Partial Authorization.” Some examples of these types of cards are Shell Cards and Wright Express cards.

Tax Payments - This program is a requirement for all merchants. There will be no cost for the program until April 1, 2009, but a convenience fee may be assessed. This fee may vary for consumer credit cards and commercial credit cards. For consumer debit transactions, a flat fee may be assessed and cannot exceed $3.95.

Government to Government - This category has gone up by .25 basis points for transactions over $8,750. The $5,000 minimum has been removed and Level 2 and Level 3 data is not required.

Again, most business owners will not be effected by the changes. Gas stations actually will benefit and will hopefully pass that savings on to the consumer, as Visa had intended to help consumers with the high cost of gasoline in this change.

If you have any questions or are looking to Save Money On Processing Costs, please give me a call.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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