Upcoming Interchange Adjustments

MasterCard has announced changes to some of their interchange rates as of Nov 1, 2017. The biggest change that will affect businesses is an increase to “standard” transaction fees.  “Standard” transactions are those that are done with the credit card not being present like phone orders or Internet transactions. There are also 3 decreases in fees affecting rewards cards. For list of the most common MasterCard Interchange fees and a comparison of old and new CLICK HERE Nov 2017 Interchange comparison. You can also see a full list of current Interchange rates online (PDF) MasterCard CLICK HERE and Visa CLICK HERE. No word of changes from Visa yet but we are watching. Note contrary to what some call centres are telling businesses there is no large decrease of fees that businesses should be getting advantage of.

For those wishing to take a second look at their fees now would be a good time. You have leverage on your processor because you can cancel without any costs as per the Code of Conduct for the Debit and Credit Card Industry (Canada) within 90 days of receiving notice of an increase of being able to determine the affect of the increase. This like everything in the industry gets complicated as some Acquirers give notice on their statements more than 90 days before the increase others like Chase send a separate notice (more fair). Note notice must be given properly or you may have a problem. You should always read the notices especially the long ones with surprises hidden inside. One processor with the habit of especially long notices has buried a new .50% “System Maintenance” fee on all sales. To put this into perspective most of our clients who deal directly with the public and have a 60/40 split of Interac to credit card fees have a total cost of less than 1.00%!

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