PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Visa and Mastercard Interchange Increases Still Looming

By Raymond Pucci
February 25, 2021
in Analysts Coverage, Credit, Fraud & Security, Fraud Risk and Analytics, Merchant
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
20% of small businesses prefer Swiped or Keyed pricing

20% of small businesses prefer Swiped or Keyed pricing

Merchants are waiting for the other shoe to drop. That would be the delayed—but still planned for April—interchange fee bump from Visa and Mastercard on some credit card transactions. The shift in consumer buying preferences driven by the pandemic is causing the most merchant angst, given that most are trying to recover from major financial losses because of Covid-19.

Consumers are shopping more online which carries higher interchange due to more fraud risk associated with card-not-present transactions. Further, many shoppers and diners are paying with credit cards not only for loyalty points, but also to avoid exchanging currency and coins in this time of social distancing. Card networks continue to provide merchants with many value-added services, but this will not resolve their continuing adversarial relationship that exists across the payments landscape.

The following excerpt from a Wall St. Journal article reports more on the topic:

Visa and Mastercard are planning to raise swipe fees for some types of credit-card purchases in April, adding to the squeeze felt by restaurants, retailers and other merchants already struggling through the Covid-19 pandemic. What’s more, customers’ switch to online shopping during the pandemic—a trend heralded for keeping businesses afloat when people are reluctant to venture inside stores—is also creating extra costs for merchants.

Swipe fees, which merchants pay when a customer pays by card, are often higher on online purchases. Card-industry executives say interchange fees help cover costs for important functions such as innovation and preventing fraud. Fraudulent online card transactions, which can result in more costs for merchants, jumped last year, according to industry data.

While total retail sales, excluding cars and gasoline, increased 0.3% from March 2020 through January from the same period a year earlier, online sales increased 57%, according to Mastercard’s SpendingPulse, which measures in-store and online retail sales across all payment forms.

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

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Consumer BehaviorCredit CardsFraud Risk and AnalyticsInterchangeMastercardOnline ShoppingVisa

    Get the Latest News and Insights Delivered Daily

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

    Must Reads

    Simplifying Payment Processing? Payment Orchestration Can Help , multi-acquiring merchants

    Multi-Acquiring Is the New Standard—Are Merchants Ready?

    February 3, 2026
    ACH Network, credit-push fraud, ACH payments growth

    What’s Driving the Rapid Growth in ACH Payments

    February 2, 2026
    chatgpt payments

    How Merchants Should Navigate the Rise of Agentic AI

    January 30, 2026
    fraud passkey

    Why the Future of Financial Fraud Prevention Is Passwordless

    January 29, 2026
    payments AI

    When Can Payments Trust AI?

    January 28, 2026
    Contactless Payment Acceptance Multiplies for Merchants: cashless payment, Disputed Transactions and Fraud, Merchant Bill of Rights

    How Merchants Can Tap Into Support from the World’s Largest Payments Ecosystem

    January 27, 2026
    digital banking

    Digital Transformation and the Challenge of Differentiation for FIs

    January 26, 2026
    real-time payments merchant

    Banks Without Invoicing Services Are Missing a Small Business Opportunity

    January 23, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result