Interchange Rates Set to Change in April

Visa and Mastercard have announced upcoming changes to their interchanges rates. The revised fees are the first substantial revisions to the interchange schedules since 2019. Global networks mostly maintained their prices in 2020 and 2021 due to the impact of Covid-19 on businesses.

What are interchange rates?

Interchange rates refer to a fee that a merchant must pay with every credit and debit card transaction. Rates are set by payment card issuing companies in exchange for accepting the credit risk and handling charges inherent in these transactions. The interchange fee is non-negotiable and makes up the bulk of the total fees associated with processing card payments. For more information, red our blog “Interchange Fees Explained and Ways to Lower Them.”

What does this mean for your business?

• Interchange rates will change starting April 22. Both Visa and Mastercard will report increases and decreases. This may impact your processing costs as a result. We recommend you look at current and then subsequent merchant statements to see if your costs have been affected.
• Businesses using Payway as their payment solution provider will still benefit from savings associated with our cost-plus pricing and should see minimum impact.
• Businesses using only our gateway should contact us for a free merchant statement analysis, especially if you are currently on a bundled rate. We can help you lower your processing fees which should reduce the impact of the Visa and MasterCard interchange rate changes.

Payway is here should  you have any questions about interchange rates, card fees, and how those can impact your revenue!