How many of you have seen something like this on your statement:
“Due to changes in Visa & MasterCard rates, we must increase your rate by .XX%”?
Have you ever wondered, “What changes?” Maybe not, but you should. Often changes are very small and for a few card categories. Most consumer credit/debit doesn’t change very often. What’s even more interesting is that sometimes these changes are decreases. In October of 2010, about 1/3 of the changes in Interchange were decreases. In April of this year, changes were so minor that they would have almost no impact on most of our clients.
The bottom line is this: Don’t take your processor’s word for it. Often these “changes in Visa/MasterCard rates” are merely an excuse to raise pricing. They count on the fact that most businesses won’t research the matter, and even if they did, would have difficulty finding clear answers.
How do you avoid the whole issue? Interchange Plus pricing. This is the only transparent pricing model for card processing which is why the Wal-Marts, Home Depots, and Olive Gardens of the world all receive Interchange Plus pricing. This is also the only pricing model offered by Heartland, and we are the only processor that offers it carte-blanche to every client no matter how large or small.
