Visa Interchange Changes – are you affected?

[et_pb_section admin_label=”section”][et_pb_row admin_label=”row”][et_pb_column type=”4_4″][et_pb_image admin_label=”Image” src=”https://www.secure-payment-solutions.co.uk/wp-content/uploads/2016/10/cards-unbranded.jpg” alt=”Visa debit card interchange charges are changing” title_text=”Merchants will soon pay much more to process Visa debit cards” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”left” sticky=”off” align=”center” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [/et_pb_image][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]

VISA

Visa has announced a couple of majorly significant changes in the way they charge their fees (interchange fees) to acquiring banks over the last 18 months or so.

Firstly, they announced a change from a fixed 8p charge for using their debit cards to 0.2% + 1p, with a cap on this charge of 50p. Then they announced that as of September 1st 2016, they were removing this cap.

This will have a HUGE impact on any merchant that takes visa debit card transactions with an average value of around £250 or above. So this is likely to include car dealerships, home furnishings retailers and auto servicing centres.

MERCHANT ACQUIRERS

Although it is important to note that we are only referring in the paragraphs above to the rates that are being charged by Visa to merchant acquirers (like Lloyds CardNet, Barclays Merchant Services, First Data and WorldPay, for example), what is undoubted is that these higher charges will have to be passed on to merchants by the acquiring banks. Click on the tabs below to see what the acquiring banks are now being charged by Visa to process debit card transactions, and this will demonstrate why acquirers will not be able to afford NOT to pass these charges on.

WHAT SHOULD MERCHANTS DO?

So what should you as a merchant be looking out for? Most acquiring banks are writing to their customers to make them aware of a revision to their pricing for Visa debit cards. If you have been benefiting from a low fixed rate of up to 50p, or a % rate of below 0.2%, this is very likely going to be significantly changed in the next few weeks.

If you do not receive such a letter, make sure that you keep a VERY close eye on your merchant statements.

I recently spoke to a merchant who was with Lloyds CardNet and had previously been charged 0.11% to process visa debit card transactions. They had just received a letter saying that this rate was being changed to 0.82%. We have now signed them up on a significantly better rate, although it is still some way above their original rate of 0.1%, as this would be BELOW the charge being levied to the acquirer themselves.

If you have received a letter along these lines, and you would like us to review your merchant charges as a result, just get in touch by filling out the form below or give us a call.

[/et_pb_text][et_pb_tabs admin_label=”Tabs” use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [et_pb_tab title=”£500 transaction” tab_font_select=”default” tab_font=”||||” tab_line_height=”2em” tab_line_height_tablet=”2em” tab_line_height_phone=”2em” body_font_select=”default” body_font=”||||” body_line_height=”2em” body_line_height_tablet=”2em” body_line_height_phone=”2em”]

£1 interchange cost (50p increase over previous charging structure)

[/et_pb_tab][et_pb_tab title=”£1,000 transaction” tab_font_select=”default” tab_font=”||||” tab_line_height=”2em” tab_line_height_tablet=”2em” tab_line_height_phone=”2em” body_font_select=”default” body_font=”||||” body_line_height=”2em” body_line_height_tablet=”2em” body_line_height_phone=”2em”]

£2 interchange cost (£1.50p increase over previous charging structure)

[/et_pb_tab][et_pb_tab title=”£5,000 Transaction” tab_font_select=”default” tab_font=”||||” tab_line_height=”2em” tab_line_height_tablet=”2em” tab_line_height_phone=”2em” body_font_select=”default” body_font=”||||” body_line_height=”2em” body_line_height_tablet=”2em” body_line_height_phone=”2em”]

£10 interchange cost (£9.50p increase over previous charging structure)

[/et_pb_tab][et_pb_tab title=”£10,000 Transaction” tab_font_select=”default” tab_font=”||||” tab_line_height=”2em” tab_line_height_tablet=”2em” tab_line_height_phone=”2em” body_font_select=”default” body_font=”||||” body_line_height=”2em” body_line_height_tablet=”2em” body_line_height_phone=”2em”]

£20 interchange cost (£19.50p increase over previous charging structure)

[/et_pb_tab][et_pb_tab title=”£50,000 Transaction” tab_font_select=”default” tab_font=”||||” tab_line_height=”2em” tab_line_height_tablet=”2em” tab_line_height_phone=”2em” body_font_select=”default” body_font=”||||” body_line_height=”2em” body_line_height_tablet=”2em” body_line_height_phone=”2em”]

£100 interchange cost (£99.50p increase over previous charging structure)

[/et_pb_tab] [/et_pb_tabs][et_pb_text admin_label=”Text” global_parent=”176″ background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_margin=”0px|0px|0px|0px” custom_padding=”0px|0px|0px|0px” saved_tabs=”all”]

Contact Form

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”on”][/et_pb_section]