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 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 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

    payment credential management

    Why Payment Declines Are a Data Issue, not a Checkout Problem

    July 27, 2026
    identity theft protection services

    The Missing Piece in Banks’ Identity Protection Strategy

    July 24, 2026
    African cross-border payments

    Africa’s Payment Problem Isn’t What You Think It Is

    July 23, 2026
    remittance platform

    The Case for Not Building Your Own Remittance Stack

    July 22, 2026
    instant payments fraud, business payments

    When Faster Isn’t Better: The New Rules of Business Payments

    July 21, 2026
    Gen Z banking

    For Gen Z, Banking Loyalty Begins with Payments

    July 20, 2026
    syria visa mastercard

    Visa’s Stablecoin Platform Marks the Next Phase of Digital Payments

    July 17, 2026
    cross-border payments

    Beyond Pix: The Cross-Border Layer Latin America Is Building Next

    July 16, 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

    ©2026 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