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Small Ticket Debit Interchange Network Battle Could Be Shaping Up

By Mercator Advisory Group
November 7, 2011
in Analysts Coverage
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USA Technologies has struck a deal with Visa that puts off any changes in their small ticket interchange fee structure for a year. Noted in the same press release,the company is hosting a series of webinars that are designed to explain how to protect small ticket interchange and further review the Durbin Amendment. No mention of MasterCard debit cards in any of these articles, but battle lines appear to have been drawn.

The USA Technologies release notes that in addition to Visa debit and prepaid cards, machines in its network will continue to accept Visa, MasterCard, American Express, and Discover credit cards but makes no mention of MasterCard debit cards. In a statement to Digital Transactions News, however, a company spokesperson said, “We currently continue to accept MasterCard debit cards and we hope to continue to accept them in the future.”

How long into the future is uncertain. “During the term of the [Visa] agreement, the company does not anticipate accepting any debit cards with interchange fees that are higher than the rates provided under the agreement,” the regulatory filing says.

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