Are you going to receive 100% of the April 2022 Interchange rate reduction?

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  • April 01, 2022
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The Card Associations are finally implementing changes to Interchange fees after a delay of two years due to the pandemic. While merchant processing fees are expected to increase for large retailers, Visa and Mastercard are lowering Interchange rates for small businesses.

Understanding the changes to Interchange are critical to effectively managing your business.

Visa will introduce updates to existing domestic Interchange programs with categories and rates for card-not-present, EMV token transactions. This includes both network tokenized transactions and digital wallets while generating up to a 10-basis point rate reduction. Non tokenized transactions are expected to see an Interchange rate increase with the overall goal being to incentivize greater transaction security.

The Card Associations are touting their commitment to small businesses but what they haven’t done is clearly define how these rebates and rate reductions will be managed or applied. Traditionally, Merchant Service Providers (MSPs) are under no obligation to pass on these savings to merchants. ACH Processing Company is MSP agnostic and operates under the belief that we work for our clients by keeping these providers honest and the solution operating at peak efficiencies.

Implementing an integrated payments solution, such as a billing platform, can help your organization achieve Level II or Level III Interchange qualification levels while automating payment processing and reconciliation.

Allow an ACH Processing Company analyst to provide you with an electronic payment processing audit with the goal of:

  • Ensuring that you’re Merchant Processing Agreement is negotiated in your favor
  • Optimizing your Interchange for Level II and Level III qualification
  • Maximizing the latest in readily available, low-cost technology
  • Supercharging your existing systems

Schedule a call with one of our analysts today to ensure that you’re Merchant Service Provider is working for you… and not the other way around.

Thank you for choosing us to be your payment solutions provider!

The Team at ACH Processing Company

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