On 1st January 2017 Visa and MasterCard increased their card schemes fees. Card scheme fees are a cost to your acquirer, whether it’s Fidelity Payment or a competitor, and are taken into account when setting the merchant services fee charged to you for each transaction. Card scheme fees make up approximately 0.02% of the transaction value for Visa cards and 0.04% for MasterCard cards.
As an honest and transparent ISO, Fidelity Payment is passing on the exact cost without any hidden extra increase.
Comparison website CardSwitcher.co.uk noted certain other acquirers are using this as an excuse to increase their fees “far in excess of their cost increase.” Ultimately the larger acquirers Barclays and Worldpay will have the biggest increases as the scheme fees level out for every bank regardless of volume.
Card scheme fees are made up of different charges, including:
- Variable fees per transaction: dependent on card type, geography and acceptance method
- Fixed fees, unrelated to any transaction: some of which are dependent on the acquirer volume processed and card scheme services used by the acquirer
The January increases equate to around 20% for chip and pin and around 40% for CNP and eCommerce transactions. Visa debit transactions are more because acquirers used to receive a sizeable rebate from Visa based on their volume of visa debit transactions processed.
The card scheme fee increases took place following Visa Inc. acquiring Visa Europe last year and bringing fees more in line with USA card scheme fees. Also EU legislation forced the card schemes to separate their brand and processing activities into separate business units, which increased their costs.
Want to know how this affects your business?
Call Fidelity Payment on 0345 481 2178 or email email@example.com for more information.