We recently did an audit for a first that does 95% of their transactions with foreign credit cards. They have a flat rate which at first glance their current rates looked high. However, when you take into account all of their transactions were card not present (online) and 95% were foreign their rate started to look better. Their processor set up the plan working on the average merchant accepting 95% + Canadian credit cards, because their transaction are the reverse it makes a big difference in costs for the Processor.
Here are some of the factors that make up the difference in Foreign Credit Card Acceptance:
- Network fees paid to Visa and MasterCard is .080%. It should be noted that some processors charge this on all transactions others only on Canadian transactions.
- Network fees paid to Visa and MasterCard on foreign card transactions are .40% for transactions in Canadian funds and .80% in foreign funds.
This just emphasizes how complicated the whole credit card pricing system is and why you need an expert to get it right.
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