Mastercard reserves the right to change the rates below at any time. Interchange fees, europe region operations bulletin no. These rates are set by mastercard every year and apply to all processors. Merchants do not pay interchange reimbursement fees merchants negotiate and pay a merchant discount to their financial institution that is typically calculated as a percentage per transaction. Discover interchange rates and passthrough fees payline. Germany intralocation mastercard, debit mastercard and maestro pos interchange fees are detailed in the pdf document below. These card companies include visa, mastercard, amex.
Interchange manager marketing team itable 062017 update june 2017. Although mastercard interchange rates have been available to merchants by request, we want the process to be as transparent as possible because as a vitally important constituency in the. Flexible interchange rates make it possible for electronic payments to deliver maximium value at the lowest cost for both merchants and consumers. Interchange rates are part of paylines interchange plus pricing plans. Interchange fees are charged by and paid directly to the card issuing brands such as visa, mastercard, discover and american express amex. Interchange rates change twice a year in april and october. Commercial card interchange fees payment product fee tier general petrol utilitiesbill payments wholesale 3 government delivery services mastercard corporate contactless terminal 1. Provided below is the pdf that includes the interchange rates set by visa, mastercard, discover, and unionpay international for processing card payments in canada, and the wholesale discount rates charged set by american express.
Download a table of current mastercard interchange rates upcoming changes for may 2020 what is interchange. The fee paid to the bank, called interchange is set by visa and mastercard. Mastercard incorporated stylized as mastercard from 1979 to 2016 and mastercard from 2016 is an american multinational financial services corporation headquartered in the mastercard international global headquarters in purchase, new york, united states. Visa interchange updates effective april 18, 2020 visa. Mastercard interchange programs and rate schedule effective. Introduction to the visa usa interchange reimbursement fees the following tables set forth the interchange reimbursement fees applied on visa financial transactions completed within the 50 united states and the district of columbia. Consistent with its approach to setting interchange fees. This fee amount varies, and is subject to change, based upon a series of interchange programs or program pricing. Visa and mastercard are the biggest card network companies in the world, so theirs are the interchange fees merchants will face most often.
Debit card interchange fees generally are lower than those for credit cards. Download the visa usa interchange reimbursement fees. Setting interchange rates is a challenging proposition that involves an extremely delicate balance. What are interchange fees and how are they calculated.
Interchange rates are only one of many cost components included in a mdr and are a necessary and efficient method by which mastercard maintains a strong and vibrant payments network. A new world elite for business segment is being introduced with an interchange rate of 2. Interchange manager marketing team itable 042017 update april 2017 update to include visa businesstobusiness b2b virtual payments product. Merchants can receive a variety of processing services from financial institutions that may be included in their merchant discount rate. Mastercard interchange rates and passthrough fees payline. Mastercard has the authority to define default intralocation domestic interchange fee programs. Interchange is the fee collected by the customers credit card bank the visa cardissuer on every transaction. The global operations headquarters is located in ofallon, missouri, united states, a municipality of st. Discover interchange fees work similarly to visa and mastercard. If your business charges a recurring monthly fee to a customer, you will generally pay a lower interchange fee than you would for an equivalent one off. Interchange rates are only one of many cost components included in a msf, and are a necessary and efficient method by which mastercard maintains a strong and vibrant payments. In other words, this is the true cost that the processor has to pay on every transaction. Mcc 4411cruise lines54 mcc 4457boat leases and boat rentals55.
Average debit card interchange fee by payment card network. Mastercard reserves the right to change these fees as it deems appropriate from time to time. The following is a summary of interchange rates of visa canada, mastercard canada, discover. Please refer to mastercard international website for additional information regarding interchange. If youre interested in learning about interchange fees, check out our article on interchange fees and how the different pricing models such as interchange plus incorporate them, and also see our complete guide to rates and fees. Quick reference booklet merchant edition mastercard. Mastercard canada interchange rate programs overview and. Visa and mastercard have separate interchange fee rates for general purpose consumer cards, rewards credit cards, commercial credit cards issued to businesses, and debit cards. We simply pass on the wholesale cost from the card issuer and then add on a transparent, small fee. Merchants do not pay interchange reimbursement feesmerchants negotiate and pay a merchant discount to their financial institution that is typically calculated as a percentage per transaction. Interchange is a small fee paid by a merchants bank acquirer to a cardholders bank issuer to compensate the issuer for the value and benefits that merchants receive when they accept electronic payments. Provided below is the pdf that includes the interchange rates set by visa, mastercard, discover, and unionpay international for processing card payments in.
The base interchange rates for all transactions are similar at 0. Information available online mastercard provides details about the standards used for this documentincluding times expressed. Magnetic stripe read unless initiated via transponder electronically authorized. Wells fargo merchant services charges you fees for processing your credit card and nonpin debit card transactions including processing fees billed to us from the payment networks visa, mastercard, discover, and american express. Visa and mastercard together account for about 71% of u.
Netherlands domestic interchange fees commercial card interchange fees payment product fee tier mastercard corporate contactless 1 0. Visa uses interchange reimbursement fees as transfer fees between financial institutions to balance and grow the payment system for the benefit of all participants. All transactions exempt and covered transactions 4. The major distinction between these cards is that they distinguish between recurring payments and oneoff payments. Mastercard interchange rates are established by mastercard, and are generally paid by acquirers to card issuers on purchase transactions conducted on mastercard cards. Commercial card interchange fees payment product fee tier general petrol government and utilities public transportation and transit merchants mastercard corporate micro payments 1 0. The tables below provide a breakdown of the current mastercard interchange rates. Setting interchange at the right level is important because if interchange rates are set too high, merchants may choose not to accept cards. As mentioned above, debit cards have significantly lower interchange rates than. Electronic interchange reimbursement fee eirf fuel cap. For both companies, the interchange will depend largely on the type of card used.
As to card brand fees, they are typically either a percentage of volume charged or a flat amount per instance. The fee is calculated by applying an interchange rate or percentage to the sale amount. Where not fully regulated by the government, mastercard sets interchange rates based on the value delivered by the issuing bank and the benefits of accepting electronic payments. Mastercard sets interchange rates based on the value delivered by the issuing bank as well as the benefits of accepting electronic payments.
Aug 03, 2017 visa and mastercard interchange rates 2017. The rates that apply to you are based on your primary business. While there are other fees that merchants pay for the privilege of making sales via credit and debit card, interchange fees are by far the largest, representing 70% to 90% of the total fees paid to banks by merchants. Region mastercard consumer credit rates group core value usd enhanced value usd world usd world high value usd world elite usd airline na na na 2. Although mastercard interchange rates have been available to merchants by request, we want the process to be as transparent as possible because as a vitally important constituency in. Update to mastercard commercial card interchange rates.
Mastercard canada interchange programs as a mastercard merchant, its important for you to know the economic model that underlies payment card transactions. Mastercard commercial card interchange fees below table is a compilation of detailed information reported in the european interchange manual in date of december 9 th 2015. The specific interchange category that will apply to any given transaction depends on the card type and other factors. These rates are set by visa every year and apply to all processors. As a result, effective october 1, 2011, debit interchange will be divided into two categories. Consistent with its approach to setting interchange fees elsewhere in the world, the goal of mastercard in setting default interchange fees is to ensure both the widespread issuance of mastercard cards by licensees and the widespread acceptance of mastercard cards by merchants. These card companies include visa, mastercard, amex, discover. Oct 29, 2018 interchange fees are charged by and paid directly to the card issuing brands such as visa, mastercard, discover and american express amex. Interchange manager marketing team itable 082016 update august 2016 update to secure and nonsecure fee tiers for visa uk domestic. Discover interchange rates are very comparable to visa and mastercard despite the tremendous rewards they offer to their cardholders. These international card present categories refer to credit cards issued outside the united states, but used inperson at a u. Interchange also promotes credit availability for small businesses and is a key driver for financial inclusion when set at the optimal level. The term interchange rate refers to the fees charged by the card companies for use of their cards.
Any changes will be published promptly on this website. Visa uses interchange reimbursement fees as transfer fees between financial institutions to balance and. Interchange manager marketing team itable 042017 update apr2017 update to include visa businesstobusiness b2b virtual payments product. Interchange rates are only one of many cost components included in a mdr, and are a necessary and efficient method by which mastercard maintains a strong and vibrant payments network. Interchange fees are determined by a large number of complex variables. Payment processing companies make money by putting a markup on top of the interchange rate. For almost 40 years, mastercard has established default interchange fees the setting of interchange rates in the absence of a bilateral arrangement between the. Mastercard has decreased its rate for business level 1 cards under the commercial data rate ii interchange program to 1.
Only retail and restaurant mccs may qualify for merit iii tier 1, 2, or 3. Weve eliminated the confusion and complexity that comes from accepting credit cards by offering interchange plus, or costplus, pricing plans. Any such changes to these fees will be published on this site as required by the standard. The english version of any mastercard document will take precedence over any translated version in any legal proceeding.
Interchange rates are only one of many cost components included in a mdr, and are a necessary and efficient method by which mastercard maintains a strong and vibrant payments. Code message description rate item level 500 retail1 retail transaction amount 1 interchange fees make up the bulk of total credit card processing costs. The goal of standardized interchange is both to ensure that mastercard cards are issued on a broad basis and that mastercard cards are accepted on a broad base of retail outlets. Merchants do not pay interchange reimbursement fees. Your specific rates are based on the productservice where the majority of your sales fall into. Mastercard be liable for any damages resulting from reliance on any translated document. As a mastercard merchant, its important for you to know the economic model that underlies payment card transactions. In case of discrepancy, the european interchange manual prevails. Interchange manager marketing team itable 082016 update aug2016 update to secure and nonsecure fee tiers for visa uk domestic cards.
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