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Archive for the ‘Industry News’ Category


Durbin Amendment

Tuesday, October 4th, 2011

As many of you know, the Durbin Amendment went into effect on October 1, 2011. The following is an article from Fox Business News that explains what this means for merchants…


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Visa & Dual Interchange Structure

Tuesday, January 11th, 2011

Happy New Year everyone! The following is some news we are following in regard to upcoming changes in interchange fees with Visa and specifically those that pertain to the acceptance of Visa Debit cards…

The Processing Brokerage

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WSJ Article is incorrect in regard to interchange fees

Monday, February 15th, 2010

Every couple of weeks, I like to browse the most recent payments industry articles that have been published online to see what people are saying. For the most part, I very rarely read anything that is not published by a reputable site. With that being said, I was shocked to read this weekend an article posted online by the Wall Street Journal (WSJ) titled “For Businesses That Accept Cards, Tips for Cutting Fees“. The following is how this article started:

“When it comes to credit-card fees, bigger companies have more clout with issuers than small ones. But there are ways to minimize costly processing fees, from negotiating to shopping around. Here are eight tips.”At this point, I am very intrigued! The author is right, bigger companies will always have more clout but that doesn’t mean you can’t have a low rate.

“Negotiate processing fees – To negotiate the interchange rate, which is set by Visa and MasterCard accounts for about three-quarters of merchants’ card acceptance fees, business owners should contact Visa and MasterCard directly, says Trish Wexler, a spokeswoman for the Electronic Payments Coalition, a group representing banks and credit-card networks.” - This statement is incorrect and it is articles like these that confuse merchants on what they should do. Unfortunately, you cannot call Visa and MasterCard directly to negotiate interchange rate as this rate is un-negotiable. There are over 300 interchange rates and though you may not be able to negotiate for a better rate, there are steps that you can take to make sure you process at the most optimal rate. If you would like more information on if you are processing at an optimal rate, contact your processor or us at The Processing Brokerage and we would be more than happy to point you in the right direction.

- The Processing Brokerage

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WSJ – Interchange Fees Step Into the Spotlight

Sunday, November 8th, 2009

According to the Wall Street Journal, U.S. banks raked in $45.3 billion last year from credit- and debit-card fees charged to merchants. About 75% of that comes from interchange fees set by Visa Inc. and MasterCard Inc. Overall merchant fees, including other revenue collected by banks and processing middlemen, are up 78% from $25.5 billion in 2003, according to the Nilson Report, a Carpinteria, Calif., newsletter that tracks the payments industry.

Merchants in the U.S. paid an average interchange rate of 1.82% per transaction last year, down from 1.93% in 2005, according to the Nilson Report, an industry’s argument that fees are falling. Please contact the Processing Brokerage for information on our interchange optimization program.
To read the rest of the article about credit card processing interchange fees, please click below:

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Discussion on growing Interchange Fees

Monday, October 26th, 2009

Credit Card ProcessingInterchange is in the news again due to the House Committee on Financial Services hearing which discussed the components of the Expedited CARD Reform for Consumers Act of 2009. As many of you know, Interchange makes up a large part of your credit card processing fees and there is currently a discussion on with different merchants who are sharing their stories on what they have done to reduce these fees.

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- The Processing Brokerage

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7-Eleven Store Owners Have Had Enough…

Wednesday, October 7th, 2009

We are happy to see businesses start taking action against the high fees that they are paying for their credit card processing. Let’s take a look at one of the excerpts from the article posted below:

“We have two stores in California. 50% of our credit card processing fees is about $800 per month. The other store is almost a $1,000 a month. Our [interchange] fees are based on the total transaction, not on a merchandise purchase. If a customer bought a thirty-five cent pack of gum and received $30 cash back so that $30.35 was run on the card, I would pay the percentage of fees based on the money I gave back as well, not just on the merchandise that was sold. My store allows customers $40 or $50 cash back, and it has typically 50 of those in a day. I have to pay interchange fees on all of that.”

There are a couple points that all merchants should know in regard to this quote:

1.) If you allow cash back on your transactions, you are essentially paying their ATM fee for them through your interchange fees. Remember, your interchange fees will range from 1.4% to over 3.00%.

2.) All customers and their cards are equal – Remember, according to Visa rules and regulations, you cannot add your own convenience fee to a transaction just because they are using a credit card. You have to charge everyone the same. In this case, you are unable to charge a convenience fee just for a credit card purchase on cash back…you would have to charge everyone (even cash customers) the same convenience fee on all transactions. This is a very frustrating aspect as you are pretty much trapped into eating these exorbitant costs.

Referenced Article:


- The Processing Brokerage

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