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.

MasterCard has changed rates in the Consumer Core Value, Enhanced Value, World Card and World Elite cards. These card types primarily affect the insurance and utility SIC codes. If you are in one of these industries, your merchant processing charges may significantly increase. Previously, MasterCard had a Program Registration ID requirement for utility companies to be eligible for special, and sometimes lower, Interchange rates. This is no longer a requirement.

Some merchant processing providers will absorb the cost of any increases, but many do not. Since most of the increases are with card types that are generally considered to be Non-qualified, many processors are passing on an increase to all Non-qualified card types whether they received an increase or not.  I’ll keep you posted with more increases, decreases and updates.

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

• Retail swiped account transactions will get a Qualified Discount Rate, which is the lowest rate possible. In this type of transaction the card holder is present, they are using a standard consumer credit card, and once the card is swiped the transaction is batched within 24 hours. If any of these criteria change, you could downgrade to a MID-Qualified or a Non-Qualified transaction, thus increasing your rate.
• A keyed transaction, or manually entered transaction, will get a MID-Qualified Rate. This can also occur if AVS (Address Verification Service) is not entered when the customer uses a rewards card, or if the transaction is not batched within 24 hours.
• A Non-Qualified transaction occurs when a card is key-entered with no AVS info, or if a Corporate, Government, or International Card is used.

If you are not able to swipe a card because you are using an online payment gateway, how can you also take advantage of better pricing? When processing a MOTO (Mail Order Telephone Order) or Ecommerce transaction make sure to do the following.

• Make sure all required AVS information is entered
• Set your payment gateway or terminal to batch or settle within 24 hours
• Enter an Order or Invoice number
• Make sure to enter the CVV2 number

Many different factors can determine the rate you are assessed on your transactions. If you know you are going to be taking card types that will typically fit into the Non-Qualified category described above, be smart when setting up your credit card processing account – make sure to find out what your Non-Qualified rate will be. Be sure to find out all the fees involved before signing on the dotted line.