February 2010 PIN Debit Interchange Updates

February 2010

NYCE PIN Debit

• The switch fee will be decreased from $0.05 to $0.0425.


• etail merchants will be billed at 0.75% + $0.2125 per transaction. The minimum transaction fee will be decreased to $0.3025.


• Quick Service Restaurant merchants will be billed at 0.55% + $0.1075 per transaction with a maximum fee of $0.5425. The minimum transaction fee will be decreased to $0.2275.


• Supermarket merchants will be decreased to $0.3025.


• Petroleum merchants will be billed at 0.85% + $0.1925 per transaction. The minimum transaction fee will be decreased to $0.3025.


• Returns will be decreased to $0.0425 per transaction.


• PINless Utility merchants will be billed at $0.6550 per transaction.


• PINless Cable merchants will continue to be assessed 1.00% + $0.125 per transaction. The maximum transaction fee will be increased to $1.055.

CU24 PIN Debit

• The switch fee will be increased from $0.025 to $0.028.


• Retail merchants will be billed at 0.75% + $0.178 per transaction with a maximum fee of $0.828


• Quick Service Restaurant merchants will be billed at 1.25% + $0.058 per transaction with a maximum fee of $0.478.


• Supermarket merchants will now be billed $0.258 per transaction.


• Drug Store and Pharmacy merchants will be billed at 0.75% + $0.178 per transaction with a maximum fee of $0.828


• Petroleum merchants will be billed at 0.75% + $0.168 per transaction with a maximum fee of $0.728


• Returns will now be billed $0.028 per transaction

April 2010

MasterCard

Currently, MasterCard's Assessment fee is 0.095%. MasterCard will increase the Assessment fee to 0.110%.

MasterCard is introducing new Interregional Interchange programs. A unique brand product classification has been defined for each of the consumer credit, debit, and commercial product families. The following brand products will qualify for the new Interregional Consumer Premium Interchange Structure.

• MasterCard World Card


• MasterCard World Elite


• World MasterCard for Business


• MasterCard Corporate World


• World Elite MasterCard Business


• MasterCard Corporate World Elite

Different rates have not yet been announced by MasterCard.



MasterCard is revising the qualification criteria for Commercial Face to Face and Commercial Data Rate II. Effective April 2010, zero will no longer be accepted as a valid tax value to qualify for these rate categories. Only non-zero tax values that fall within the specified valid range will be accepted. Therefore, if a commercial transaction has no sales tax, the transaction will downgrade to a lower Interchange level.



MasterCard is adding a new Interchange program for MasterCard Enhanced Small Business. Pricing for the new program categories will be announced once released. The following card programs will be supported in the U.S. Small Business Sector:

• MasterCard BusinessCard Card


• MasterCard Professional Card


• MasterCard Executive BusinessCard Card

Visa



Visa is implementing modifications to the No Signature Required program:

• MCC 5993 (Cigar Stores/Stands) is being added as an eligible MCC


• Standardize amount to equal to or less than US $25.00 to be eligible.


• Transaction with cash back amounts will not be eligible.

NYCE PIN Debit

• NYCE will implement a Premier Issuer fee of $0.011 per transaction. This will be an addition to the existing interchange fees.

November 2009

Accel, Jeanie, and Maestro have announced modifications to the current rates effective November 1, 2009. The actual changes are as follows: 



Accel

• The maximum fee for Retail transactions has been eliminated . 

Jeanie

• Retail transactions will be billed at 0.80% + $0.20 per transaction with a maximum fee of $0.80.


• Supermarket merchants will now be billed a total of $0.35 per transaction.

Maestro

• Retail transactions will be billed at 0.90% + $0.175 per transaction with no maximum fee.


• Quick Service Restaurant transactions will be billed at 0.75% + $0.195 per transaction with a maximum fee of $0.975.


• Supermarket merchants will now be billed 1.05% + $0.175 per transaction with a maximum fee of $0.375.


• Cross-Border transactions will be billed at 1.60% + $0.025 per transaction with no maximum fee.
  
  

October 2009



MasterCard



MasterCard will increase Cross Border fees as well as the Acquirer Support fee. Only MC International transactions will be assessed the Acquirer Program Support Fee (previous 0.45%, increasing to 0.55%), and the Cross Border fee (previous 0.30%, increasing to 0.40%), as these fees apply to US merchants settling International transactions in USD. 

MasterCard is modifying the World Elite Restaurant and the High Value Restaurant Interchange rate programs significantly.

Rate Descriptions	Current Rate	New Rate
World Elite Restaurant	1.73 % + $0.10	2.20 % + $0.10
High Value Restaurant	1.73 % + $0.10	2.20 % + $0.10

MasterCard is slightly lowering Interregional POS Consumer interchange rates and expanding its Utilities program to Business Cards. with the addition of Interchange categories for Business Utilities, Business World Utilities, and Business World Elite Utilities.



Visa

Visa will assess an International Acquirer fee (IAF) to U.S. Acquirers. Impact is expected to be limited. Only Visa International transactions will be assessed the 0.45% IAF fee. 

Visa announced the implementation of fees for transactions that do not match authorization items to settlement items. 

• The Misuse of Authorization System fee – There will be a fee assessed for transactions in which an approval authorization is obtained, but there is no matching settled transaction or authorization reversal.

{A merchant obtains an approval code and doesn't use it, Visa will assess a $0.045 per occurrence.  This fee will be effective October 2009.}

The Misuse of Authorization System fee only refers to authorizations that do not have corresponding settled transactions.  Merchants may process an Auth Only with the forced transaction processed a few days later (the original authorization is subsequently used).  Note: The auth amounts and settled amounts do not have to match. 

Misuse of Authorization fees are assessed on approved or partially-approved authorization transactions that cannot be matched to a clearing (settled) transaction or an authorization reversal.  Clearing must occur within 10 days of authorization for all merchant categories, with the exception of T&E segments, which must clear transactions within 20 days of authorization, regardless of the transaction date. Visa implemented this penalty fee to reduce the occurrence of "ghost authorizations" (authorizations that are approved but never cleared), as these can adversely impact a cardholder's open-to-buy, leading to increased declines and confusion at the point of sale. To clarify, authorization reversals will only occur for a cancelled sale, or a timeout.  An authorization reversal cannot be manually processed by the merchant.

Visa Operating Regulations allow for $1 status check transactions for automated fuel dispenser and select lodging merchants, but other merchants must utilize the $0 account verification message.

• Zero Floor Limit Fee – There will be a fee assessed for transactions in which a settled transaction can not be matched to an approved authorization.

{A merchant settles a transaction without a valid approval code (makes up an approval code), Visa will assess a $0.10 per occurrence.  This fee will be effective October 2009.}

Visa has made a modification to the Account Verification Service (AVS) fee. Visa is now charging $0.025 on AVS only transactions. AVS only transactions are considered Zero Dollar Account Verifications as this type of transaction occurs when no authorization is requested or obtained.



Discover



Discover has introduced a new International Processing Fee and an International Service Fee.

• The International Processing Fee will be processed on all transactions, including Cash Advance, conducted at a merchant location in a country other than the country that the card was issued in.


• The International Service Fee will be assessed on transactions conducted at a merchant location in the United States where the issuer of the card is in a country other than the United States. 

Discover has also introduced International Interchange rate categories and made modifications to several categories including increasing Consumer Core, Rewards, Premium Mid and Base and Commercial Base rates by 10 basis points.



Effective in October 2009, merchants in the U.S. and designated U.S. territories that accept the Discover card will be enabled to accept JCB and Diners Club cards under the Discover network.  JCB and Diners Club transactions will be processed at your Discover rate.   



American Express

Effective October 1, 2009 the American Express Monthly Flat Fee will increase to $7.95 per month. Monthly Flat Fee is mandatory (regardless of estimated Charge Volume) for these industries: Internet-Physical Delivery merchants; Mail Order/Telephone Order; Home Based Businesses.



Shazam Debit Network

• Retail transactions will be billed at 0.75% + $0.19 per transaction which is a decrease from the current rate of 0.75% + $0.20 and there will no longer be a maximum per transaction fee. 


• Quick Service Restaurant and Small Ticket merchants will be billed at 1.25% + $0.09 per transaction and there will no longer be a maximum per transaction fee. 


• Petroleum merchants will be billed at 0.75% + $0.17 per transaction and there will no longer be a maximum per transaction fee. 


• All other fees remain the same.

August 2009

PIN Debit



The debit network NYCE has announced several changes to their debit network pricing effective August 1, 2009. The changed fees are as follows:

• There will be a new Petroleum category (MCC 5541 and 5542) with a debit rate of 0.85% + $0.20 per transaction with a minimum rate of $0.31 per transaction.


• Standard (Retail) transactions will now be assessed a minimum rate of $0.31 per transaction.


• QSR transactions (MCC 5814) will now be assessed a minimum rate of $0.235 per transaction.


• All remaining fees for NYCE transactions remain the same.

• Retail merchants will now be billed at 0.75% + $0.18 per transaction with a new maximum fee of $0.73.


• Grocery merchants will now be billed at $0.28 per transaction. 


• All remaining fees for ACCEL transactions remain the same.

April 2009 Interchange Adjustments



Visa



Visa will modify several Consumer Credit and Signature Preferred Interchange fees. Visa is lowering Card Not Present, Key Entry and E-Commerce Interchange rates as well as lowering Hotel and Car Rental rate categories. Restaurants will be impacted by a 5 basis point increase on Visa Rewards cards. Visa will extend Small Ticket Interchange Rates to Service Stations when the transaction size is $15.00 or less. Visa will modify Interlink Interchange fees including the establishment a unique Interlink interchange category for Automated Fuel Dispenser (AFD) and Service Station transactions.



MasterCard



MasterCard will modify commercial Interchange rates. Some higher, some lower. The goal of these changes are unclear. MasterCard will launch the availability for issuers to enroll Consumer World accounts in the "World High Value" program to qualify for differentiated interchange. As of April 2009, Interchange rates for the new category will mirror those currently used for the Consumer World Elite cards, so there will be no immediate impact of this launch. In an upcoming April 2009 initiative, the MasterCard Acquirer Access fee that is currently in place and being billed at a pass through cost of $0.005 per authorization is being eliminated and replaced with Network Access and Brand Usage (NABU) fee which will be billed at a pass through cost of $0.0185 per item. This MasterCard change will greatly impact merchants with small transaction sales.



Debit



AFFN debit network has announced changes to their debit network pricing structure effective March 2009.

• Retail transactions will now be billed at 0.65% + $0.155 per transaction with a new maximum fee of $0 .535 per transaction.


• Major merchants will now be billed at 0.50% + $0.10 per transaction with a new maximum fee of $0.435 per transaction.


• Grocery merchants will now be billed at $0.205 per transaction.


• Returns will now be assessed at $0 .035 per transaction.

Interlink has announced an increase to their Retail per transaction rate.  As a result of these changes, Retail merchants will now be charged 0.75% + $0.205 per transaction with no maximum fee. Interlink is also creating a new category for Petroleum Fuel.  These merchants will be charged 0.70% + $0.205 per transaction with a maximum fee of $0.985 per transaction. 

Pulse has announced a rate increase effective April 1, 2009. The changes are as follows:

• The Switch Fee is increasing from $.07 to $.08 Per Item for all PIN based activity and from $.06 to $.07 for all PINless activity.


• Retail & Petroleum transactions will now be billed a total of 0.75% + $0.18 per transaction.


• Grocery merchants will now be billed a total of $0.30 per transaction.


• Returns will now be billed at $.08 per transaction.


• PINless Utility will be billed at $0.665 per transaction; all other PINless activity will now be billed 0.80% + $0.16 per transaction with no maximum.

January & February 2009 Update

PIN Debit

Effective February 1, 2009, the following rates apply for STAR debit activity:

• The STAR PINless debit interchange rate will remain at 0.65% + $0.14, with an updated maximum rate of $1.01 per item.  The associated break-even amount is $133.85. 


• The STAR Petroleum interchange rate will change to 0.80% + $0.14 per item, with an updated maximum rate of $0.71 per item.  The associated break-even amount is $71.25.

Changes are scheduled  to the pricing  of the NYCE and STAR debit networks .  



NYCE – Effective January 1, 2009

• The Switch Fee is increasing from $.0375 to $.05 Per Item. This impacts the following pricing categories: 


• Retail transactions will be billed at 0.75% + $0.20 per transaction and there will no longer be a maximum per transaction fee.


• Quick Service Restaurant merchants will be billed at 0.55% + $0.115 per transaction with a maximum of $.55 per transaction.


• Grocery merchants will now be $0.31 per transaction.


• Returns will now be billed at $.05 per transaction.

STAR – Effective February 1, 2009

• Petroleum merchants will now be charged .80% + $0.1725 per transaction with a maximum transaction fee of $0.7425.


• PINless Bill Payer transactions have a new maximum fee of $1.0425 per transaction.