Soon increases in Visa and Mastercard rates

Twice a year, card brands issue price adjustments to their Interchange Rates. All of these rates are available for review on their individual sites. Due to Covid-19, the usual fall price adjustments in 2020 have been delayed. Now, spring is right around the corner, which means it’s once again time for price changes by the card associations. Since the previous adjustments (translated as “increases”) were delayed, these changes are more substantial than usual.

These upward adjustments will have an impact on each and every merchant that accepts plastic as a form of payment. Rate increases will vary depending on the type of card and how your transactions are processed, whether in person, online or cardless. This, of course, couldn’t come at a worse time. We have seen so many businesses that have had to close their doors, either permanently or at the very least have seen their revenues drastically reduced due to various closures across the country. Now, it looks like things are finally starting to wind down a bit and we are starting to see businesses reopening even if it is at reduced hours or capacities as mandated by federal, state or local entities.

So what is a business owner supposed to do? At a minimum, take the time to dig into your current business services and gain a full and in-depth understanding of exactly what you’re paying for. This is one of the most important cost centers in your business and it is absolutely necessary that you stay on top of it and keep your fees under control as much as you can. Then, when customers start coming back to you, more of that revenue will go to your bottom line and not to the service provider. There are also technological and methodical advances that have been developed recently, which should also be explored to increase income.

Hopefully, your business services representative is one who truly values ​​the relationship and isn’t just interested in the commissions earned. They should be aware of these exchange increases and proactively contact you to alert you and make recommendations that will be to your benefit.

Let us all pray that we can see that our country can return to some kind of normalcy as the year progresses. We live in the greatest nation in the world and these last twelve months have been difficult, but together we can come back strong.