interchange rates by mcc

Interchange rates are set and regulated by card brands such as Visa ®, Mastercard ®, Discover ®, and UnionPay. Interchange Downgrade Fees As I briefly mentioned earlier, interchange downgrades cost more to process. This rate is specific to the utility industry, MCC 4900 and is targeted toward the recurring payments market, specifically utility bills. Payment processing companies make money by putting a markup on top of the interchange rate. Interchange rates are set by credit card companies such as MasterCard, Visa, American Express, and Discover. 1.35% to 2% . Interac will calculate the interchange fee on a per transaction basis. Network assessment fee. It’s a number that’s more important than you may realize. Visa Charity Rates; Visa has a special rate category specifically designed for nonprofits. Interchange fee – Interchange is a fee that an acquirer pays to issuers for each transaction that they initiate and that is subsequently approved by the issuer. This is called cost-plus or interchange-plus pricing. (Select "Visa Canada Interchange Rates" link on the right hand menu) MasterCard Canada; Interac; Discover (If you cannot remember your Discover password, please contact the Moneris Service Centre at 1-866-319-7450 for assistance) UnionPay; Merchant Direct. Business-to-Business: Transactions eligible for the B2B rate must be CPS qualified (not qualifying for Level 2 rates) and be processed by merchants operating in qualified Merchant Category Codes (MCCs). A merchant category code (also known as MCC) can affect the interchange rate and credit card processing fees a business pays for the products or goods it sells. Visa and MasterCard typically publish updated interchange rates in April and October. Transactions with the qualifying MCCs can be face-to-face or accepted in a card not present environment. These rates are current as of April 2020, and now effective July 2020 for the public. Visa announces new interchange rate for B2B merchants. Interchange fees are important because they are collected by banks that issue credit and debit cards, and they account for the vast majority of a business’ credit card processing expense. Of course, a merchant’s decline rate isn’t only due to the MCC code. Interchange Rate: A fee charged by banks that covers the cost of handling and credit risk inherent in a bank credit or debit card transaction. Businesses with certain merchant category codes may qualify for interchange rates that often lead to lower than typical credit card processing charges. The credit companies will be able to calculate rewards conveniently and determine the category of your business; which is high risk or low risk. Not all nonprofits will qualify – but if you’re classified with the MCC of 8398, or as a “Charity or Social Service” organization, then you’ll qualify for far-reduced interchange rates. Transactions made by merchants with Merchant Category Codes 6012, 6211, 9311 or 9399 meeting certain other criteria can qualify for ‘Me to Me’ Interchange fees. Instead, the transaction will just fall into a new category with higher credit card processing rates. At any given time, the card brands may offer discounted Interchange rates to certain industries. The Misuse of Authorization Fee is a preexisting fee that has simply had its applicable timeframe changed. Keep reading to … You won’t be assessed a specific fee or penalty based on the downgrade. Sources: Visa USA Interchange Reimbursement Fees published on April 13, 2019, Mastercard 2019-2020 U.S. Debit Products. Interchange Reimbursement Fees The interchange rates will vary depending on your MCC, the type of transaction, method of acceptance and card mix (types of card). To reach the 1.40% average, Mastercard will make a significant change to how they assign interchange rates. The new MES interchange rates provide differentiated operating guidelines to help participants compete more effectively in the payments market and to increase merchant acceptance for payments currently captured by cheque and other forms of payment. *MCC 8050 – Nursing and Personal Care Facilities added to the list of MCCs eligible for this rate program **Additional business rules associated with participation in these programs . Flexible interchange rates make it possible for electronic payments to deliver maximium value at the lowest cost for both merchants and consumers. However, there are a few factors, some of which are outside the business owner’s control. 1 . Will my processing costs increase or decrease? To qualify for each MCC code, interchange rates by mcc charge different fees above Visa ’ s cost ; cost. Is specific to the utility industry, MCC 4900 industry, MCC and! 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