I have discussed in previous posts new Interchange category rate changes that most business owners have most likely seen notifications about on their statements. Most of these notices say “Increase” and these increases are being passed on the merchant. Not all Interchange categories have experienced increases – the main changes have been in the Business, Corporate, and Purchase Card categories and the increases range from .05% to as high as .25%.

Some of the main increases have been Corporate Card Non -Travel Level 2 with an increase of .05%, Purchasing Card Retail with an increase of .10%, and Business Standard T&E with an increase of .25%. Card types such as Corporate Card Retail had a decrease of .10%.  Although the CPS Automated Fuel Dispenser Credit category went down significantly on their rate by .35%, they raised their transaction fee by .20 cents.

Many merchants that take the card types in the increased categories may want to contact their merchant services provider to see what their total increase will actually cost them.

Continue reading "Are Businesses In Store for More Interchange Increases?"

I frequently get calls from merchants who say they were quoted one rate, but claim different rates are showing up on their statements. Unfortunately, merchants can experience a rate increase or surcharge because of the type of card your customers are using, such as sky miles cards and rewards cards. Another cause of increased processing costs is transactions being processed incorrectly by the merchant. How can merchants avoid being charged these surcharges and still qualify for the best rate possible?

First, it is important to understand the different types of transactions that can occur when running a credit card sale:

Continue reading "What are Non-Qualified Transactions and How Can Merchants Avoid Them?"