Payment Processing Fees to Remain Untouched Until July 2020
The new rates were set to take effect in April
According to Digital Transactions, the major card networks like Visa, Mastercard, American Express and Discover, are planning to postpone their new interchange rates that were originally scheduled to take effect in April. The delays come on the heels of the impact that the coronavirus (COVID-19) is having on merchants who have been forced to reduce, suspend or close their operations. These changes will now go into effect in July instead of April.
Some independent sales organizations and other groups have called on the networks to cancel the April interchange updates, saying merchants do not need an increase in the price of accepting cards in such a distressed environment.
Earlier this month, the card networks were proposing a large change to their interchange rates – fees charged every time a consumer uses a card. These fees, also known as swipe fees, could go up or down depending on the merchant setting and the way a consumer pays for their purchase.
Major Payment Networks’ Announcements
Some of the card networks have not publicly confirmed a delay, but a few ISOs told Digital Transactions that they have received “official notice” that Visa Inc., Mastercard Inc. and American Express Co. are delaying planned April changes in their pricing schedules.
“Discover recognizes that many organizations are facing operational challenges, with the majority of business operating remotely," Discover’s spokesperson said. "Therefore, we have made the decision to postpone our spring release, 20.1, from April 17, 2020 to July 17, 2020 in order to support our clients and their customers.”
Thank you to OSAE Member Infintech for providing this recent update to our members.