PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Merchants Gain Another One Year Reprieve On Interchange Fee Hikes From Mastercard and Visa

Raymond Pucci by Raymond Pucci
March 16, 2021
in Analysts Coverage, Commerce, Credit, Merchant
0
What Steps Do Merchants Need to Take Now to Ensure Compliance with SCA in Time for the Enforcement Deadline?

What Steps Do Merchants Need to Take Now to Ensure Compliance with SCA in Time for the Enforcement Deadline?

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Merchants can breathe a little easier. That’s because Visa and Mastercard are postponing interchange fee changes scheduled to take effect next month. In April 2020 the card networks delayed interchange fee changes for one year due to the pandemic. They were again ready to roll out the new interchange schedule this April, but received attention on Capitol Hill from Sen. Dick Durbin and Rep. Peter Welch, who urged the companies to hold off on 2021 fee increases.

Most interchange increases reportedly were directed at online transactions as well as premium credit cards. Merchants were hoping to see another delay in interchange increases as they recover from the effects of the pandemic. Their wish has come true.

The following excerpt from a Bloomberg article reports more on the topic:

Visa Inc. and Mastercard Inc. are postponing plans to boost the fees U.S. merchants pay when consumers use credit cards online, pushing back the changes another year to April 2022 because of the pandemic.

“Visa is committed to maintaining stability in our payments system and will not make any future rate changes in the U.S. for another year while the economy recovers,” the company said in an emailed statement.

Retailers have been asking both networks in recent months to delay hikes in so-called interchange fees, hoping to avoid a jump in costs for accepting cards at a time when consumers are especially reliant on online shopping. The companies’ plans have drawn attention from Senator Dick Durbin, the Illinois Democrat who previously helped limit fees on debit-card transactions.

As part of its delay, Mastercard said it’s also pushing back plans that would have caused some bricks-and-mortar retailers, along with convenience stores and supermarkets, to see higher rates. The network vowed that it would “continue to be thoughtful” about the timing of implementing the changes.

Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group

Tags: Covid-19FeesinterchangeMasterCardMerchantsVisa
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    instant payments, real-time payments, RTP

    Banks Developing Instant Payments Products in the U.S. Should Focus on Billers to Generate New Revenue Streams  

    May 31, 2023
    Digital Wallet Use Delivers on Convenience and Security

    Digital Wallet Use Delivers on Convenience and Security

    May 30, 2023
    5 Ways to Protect Your Financial Institution from a Cyberattack

    5 Ways to Protect Your Financial Institution from a Cyberattack

    May 26, 2023
    traditional banks

    How Traditional Banks Can Modernize Without Risk

    May 25, 2023
    identity fraud

    Javelin’s Identity Fraud Study Highlights the Changing Nature of Fraud

    May 24, 2023
    SASE, security-as-a-service

    Security-as-a-Service Secures
    Distributed IT Models

    May 23, 2023
    mule. real-time

    Early Detection of Mule Activity Requires Real-Time Solutions

    May 22, 2023
    embedded finance, ecommerce

    How Retailers Can Enter the World of Embedded Finance Confidently 

    May 19, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download this complimentary report from Brightwell: