Skip to main content

Significant Changes In Merchant Account Fees Require Merchant Statement Quotes!

It can be a daunting task to read and understand a merchant statement. Both Visa and MasterCard are coming out with some pretty significant changes this year – no doubt in response to the Durban Amendment’s impact on the industry. This will cause even more frustration on providing a merchant statement quote to your merchant customers.

I like this quote from www.paymentssource.com, “ISOs also have to perform complex analysis and decide quickly whether to mark up the fee to cover the costs it will bring, teach employees the fine points of the new approach, and possibly hire additional help-desk workers to prepare for an expected avalanche of phone calls from merchants questioning or complaining about the fee, he contends.”

Are you ready?

First let’s talk about VISA’s changes:


1. The Network Acquirer Processing Fee (APF), although still $0.0195 per authorization on credit transactions, will be reduced to $0.0155 per authorization on VISA branded debit cards.

2. VISA debit card and VISA prepaid card purchase transactions that fail or do not request CPS qualification will be charged an addition Transaction Integrity Fee of $0.10 per transaction. Debit and key entered transactions without address verification will be the most commonly hit. By the way, this is in no way related to Interchange and Assessment fees.

3. VISA will also be charging a new Fixed Acquirer Network Fee (FANF) April 1, 2012. This is no doubt the most concerning fee of the bunch. In fact, the ETA is begging VISA to postpone the fee as merchant account providers simply are not yet ready to determine how this fee will be “properly” passed on to merchants. This new fee amount will be determined by a merchant’s taxpayer ID basis (TIN). VISA will determine the rate for each taxpayer ID based on channel and MCC, with quarterly collection starting with July 2012 for the previous calendar quarter. This will be assessed on a per location rate basis for all merchants with taxpayer ID, Fast Food Restaurants being the exception. It will cost an additional $2 per location for small merchants all the way up to $65 per location for massive chain stores! To top it off, higher-volume and card-not present retailers will pay even more per location.

4. CorpCard Level 3 rates will increase 15 basis points, and Corporate Card Electronic with Data rates will go up 10 basis points.

Now for the MasterCard changes:


1. MasterCard will be competing (???) With Visa to collect both a new annual Acquirer Licensing Fee and new Type III Third Party Processor (TPP) beginning July 2012. The full 2011 year volume will be the basis for the 2012 fees. Since only half of 2012 is covered (July to December) the 2012 fees will be 50% of the total calculated fees. Are you confused yet?

2. MasterCard is also starting a new Regulated debit small ticket debit and credit Interchange programs April 2012. This change is to help MasterCard better track small ticket transaction volumes, but the same Regulated debit rates will apply.

Finally, here are Discover’s changes:


Discover is the most modest of the bunch, only increasing its assessment fee by .005% at this time.

These are just a few of the many upcoming changes this year. Make sure to keep up to date and inform your merchants that these are widespread changes. Merchant Statement Analysis can help you to decipher all of these new fees and help your business to prosper. Click the logo towards the upper right of my blog for more details.

REFERENCE
http://www.paymentssource.com/news/eta_visa_acquir_fixed_fee_postpone_cohen_moneris-3009918-1.html?CMP=OTC-RSS

Comments

Popular posts from this blog

THE IMPORTANCE OF MERCHANT STATEMENT ANALYSIS IN BUSINESS

Businesses often rely on a variety of vendors and suppliers to provide the materials and services needed to run their operations. However, it's important to keep track of these expenses and ensure that you are being charged correctly. One way to do this is through merchant statement analysis. Merchant statement analysis is the process of reviewing and analyzing the statements provided by your vendors and suppliers. This allows you to identify any errors or discrepancies in the charges, such as duplicate charges or incorrect pricing. By regularly having your statements reviewed, you can ensure that you are only being charged for the goods and services that you have actually received. The best help with merchant statement analysis is from us: Merchant Statement Analysis. Its our very name! This service  quickly and easily reviews and analyzes  merchant credit card statements. It can save time and reduce errors, leading to more accurate and reliable financial information. A merc

DON'T GET OVERCHARGED FOR CREDIT CARD PROCESSING FEES!

Hey there! So, accepting credit cards is pretty much a necessity for any business these days, right? But, the cost of credit card processing can add up quickly. From merchant account fees to chargeback fees, it can be tough to keep track of what you're paying and why. In this article, we're going to break down the costs of credit card processing and give you some tips on how to avoid overpaying. First, there's merchant account fees. This is the fee you pay to the company that sets up your merchant account, which is the account you use to accept credit card payments. Merchant account fees can vary widely, and they can include monthly fees, annual fees, and application fees. It's important to shop around and compare merchant account fees from different providers to make sure you're not overpaying. Next, there's interchange fees. These are the fees that are charged by the credit card issuer, such as Visa or Mastercard, for each transaction. These fees are set by th

FIND THE LATEST MERCHANT CREDIT PROCESSING INTERCHANGE RATES HERE

LATEST OFFICIAL INTERCHANGE RATES  Here is where you will find the latest interchange reimbursement rates that are available to the public.  Merchant Statement Analysis is here to help you with your statement quote needs.  Just click the Welcome MSA logo to the right of this page to visit our website and get more help.  VISA USA VISA EUROPE   MASTERCARD  MASTERCARD EUROPE WELLS FARGO PASS-THROUGH FEES  WELLS FARGO PAYMENT NETWORK QUALIFICATION MATRIX