When we announced Interchange increases from Visa and MasterCard late in 1997, which were to take effect in early 1998, we noted that this could be a boon to sales. Our thinking was that many merchants had not thought about their rate in years, and this would be an excellent opportunity for ISOs to go in and move a customer away from their current relationship. (Hello attrition!)
Well, if that were true for 1998, then 1999 will be an even better year to get merchants to switch processors. We are just starting 1999 and the interchange increases (left) planned for April are not yet in place; therefore, your sales opportunities from these increases are just ahead. We have also heard that there is a chance that there could be more changes to these rates before April. In addition to new pricing, Visa is introducing a new on-line debit product, called the Check Card (PIN based), with interchange of 0.55% plus $0.10
Visa Interchange Category Increase
CPS/Retail Credit is increasing .14%
CPS/Retail Check Card is increasing .12% & $.04
CPS/Card Not Present (MO/TO) is increasing .10%
EIRF is increasing .04%
CPS/Hotel and Car Rental is increasing .10%
CPS/Supermarket is increasing .05%
The entire price change is as follows:
Rate Category Current Rate April 1999 Rate
Consumer Products
CPS/Retail Credit 1.31% 1.45%
CPS/Retail Check Card 1.04% + $0.06 1.16% + $0.10
Check Card (PIN Based) 1 N/A 0.55% + $0.10
CPS/Retail 2
(Emerging Market Usage) 1.43% + $0.05 1.43% + $0.05
CPS/Hotel and Car Rental
(Card Not Present) 1.43% + $0.05 1.53% + $0.05
CPS/Hotel and Car Rental
(Card Present) 1.43% + $0.05 1.53% + $0.05
CPS/Card Not Present 1.65% + $0.05 1.75% + $0.05
CPS/Automated Fuel Dispenser 1.40% + $0.05 1.50% + $0.05
CPS Supermarket Credit 1.15% 1.20%
CPS/Supermarket Check Card $0.36 $0.40
Check Card-Supermarket
(PIN Based) 2 N/A $0.25
CPS/Passenger Transport 1.65% + $0.05 1.70% + $0.05
Express Payment Service 2.00% + $0.02 2.00% + $0.02
Electronic Interchange Rate
(EIRF) 1.81% + $0.10 1.91% + $0.10
Standard Interchange Rate 2.09% + $0.10 2.17% + $0.10
Interlink $0.10 (Supermarket) $0.10 (Supermarket) .45% (Non-Supermarket) .45% (Non-Suprmkt)
with $0.12 cap with $0.12 cap
Commercial Products
GSA Purchasing Card
Large Transaction 3 N/A 0.95%+$35.00
Electronic Interchange Rate 2.02% + $0.10 2.02% + $0.10
Standard Interchange Rate 2.22% + $0.10 2.22% + $0.10
1 Effective September 26,1998
2 Effective September 26, 1998
3 Effective October 23, 1998
