April 2018 Interchange Fee Increases & Decreases

April 16, 2018

Your Fees May Have Gone Up!

Savings — © Depositphotos – Robyn Mackenzie

Every April and October, Visa and MasterCard adjust their interchange fees (the base fees for accepting all credit and debit cards). If you are currently on an interchange-plus pricing plan, this will impact the rates you pay on certain transactions. Some of your rates may have gone up, some may have gone down, and some new interchange classifications have been added that may now apply to you.

Wells Fargo has prepared an incredibly useful matrix that outlines the new interchange rates and highlights which fees have been adjusted. These changes are active as of April 13, 2018, and they can be expected to last until mid-October 2018 barring a rare July update from one of the card networks. In an effort to spare you the effort of browsing through 95 pages of interchange fees, we've summarized the updated fees below. Note: if an interchange fee is not mentioned in this summary, it has not been changed since October 2017.

Visa Interchange Adjustments April 2018

Below are the updated interchange fees for Visa card types as of April 2018. See the bottom of this section for a general summary of these changes.

Visa Interchange Fee Increases

Visa did not increase any of its interchange rates during this update.

Visa Interchange Fee Decreases

Visa did not lower any of its interchange rates during this update.

New Visa Interchange Fees

A new interchange program called “CPS/Debt Repayment” has been added for certain debt-related transactions

A “Debt Repayment – No fee” interchange rate of 0.65% plus $0.15 (cap $0.65) has been added
A “Debt Repayment 2” interchange rate of 0.65% plus $0.15 (cap $2.00) has been added. Merchants may add surcharges on Debt Repayment 2 transactions

A Visa Misuse of Authorization Fee of $0.09 now applies to transactions that are authorized but not matched to a settled transaction within 10 days
A Visa Transaction Integrity Fee of $0.10 has been added to transactions processed by U.S. card transactions that do not request Custom Payment Service (CPS) participation or that fail CPS qualification.

Visa Interchange Summary

Nearly all businesses will pay the same interchange rates that they have been paying since October. There have been no changes to interchange fees for existing interchange programs, and only one interchange program has been added. Financial Institutions (MCC 6012) and Non-Financial Institutions (MCC 6051) are the only business types that are eligible for the CPS/Debt Repayment interchange program, and certain transaction criteria must be met for a transaction to qualify for these rates. The Misuse of Authorization Fee is a preexisting fee that has simply had its applicable timeframe changed. The Transaction Integrity Fee previously applied to debit and prepaid transactions, but it has now been extended to credit card payments. It applies to transactions that don't meet any criteria for any interchange program.

If you are contacted by a representative from “Visa,” “MasterCard,” “the card networks,” or “the acquiring bank” who claims that your rates have increased or decreased, this person is likely attempting to trap you in a “slamming” scam. Visa's interchange rates can be seen here.

MasterCard Interchange Adjustments April 2018

Below are the updated interchange fees for MasterCard card types as of April 2018. See the bottom of this section for a general summary of these changes.

MasterCard Interchange Fee Increases

MasterCard's Assessment Fee has been increased from 0.1275% to 0.1375% and will continue to be charged on all MasterCard transactions less than $1,000

MasterCard Interchange Fee Decreases

MasterCard's Assessment Fee has been decreased to 0.01% for all Consumer Credit and Commercial transactions equal to or greater than $1,000

New MasterCard Interchange Fees

MasterCard did not introduce any new interchange rates during this update.

MasterCard Interchange Summary

MasterCard's assessment fee increase will affect all merchants who accept MasterCard payments, but MasterCard has not changed the rates that apply to any specific interchange program. Government-owned lotteries (MCC 7800) have been added to the “Public Sector,” “Convenience Base,” “Emerging Market,” and “Small Ticket” interchange programs. Interchange fees on all MasterCard transactions can be seen here.

Discover Interchange Adjustments April 2018

Below are the updated interchange fees for Discover card types as of April 2018. See the bottom of this section for a general summary of these changes.

Discover Interchange Fee Increases

Discover's rate for Premium cards under the “Recurring Payments” interchange program has increased from 1.35% plus $0.05 to 1.45% plus $0.05

Discover Interchange Fee Decreases

Discover did not lower any of its interchange fees during this update.

New Discover Interchange Fees

Discover has created an “International Consumer” interchange program that applies to cards issued by non-U.S. banks

Discover has created a “Non U.S. Issued Credit” rate of 1.65% which, when combined with Discover's 0.50% international transaction rate, will effectively cost 2.15%
Discover has created a “Non U.S. Issued Debit/Prepaid” rate of 1.20% which, when combined with Discover's 0.50% international transaction rate, will effectively cost 1.70%

Discover has created an “International Commercial” interchange program that applies to cards issued by non-U.S. banks

Discover has created a “Non U.S. Issued Commercial” rate of 1.90% plus $0.10 which, when combined with Discover's 0.50% international transaction rate, will effectively cost 2.40% plus $0.10

Discover has created an “International Consumer Base” interchange program that applies to cards issued by non-U.S. banks

Discover has created a “Non U.S. Issued Credit/Debit/Prepaid” rate of 1.70% plus $0.10 which, when combined with Discover's 0.50% international transaction rate, will effectively cost 2.20% plus $0.10

Discover Interchange Summary

Discover's rate increase for Premium cards under the Recurring Billing interchange program will, predictably, only impact businesses that regularly accept certain recurring Discover transactions. Discover's newly created interchange programs for international cards is a total overhaul of the company's international card pricing, and it will apply only to cards not issued by U.S. banks. Non-Financial Institution-Stored Value Card Purchase/Load (MCC 6540) transactions have been explicitly excluded from the “Retail,” “Key Entry,” “Card Not Present,” and “E-Commerce” interchange programs. Cruise Lines (MCC 4411) and Passenger Railways (MCC 4112) have been added to the “Passenger Transport” interchange program, while Airlines (MCCs 3000-3299, 4511), Cruise Lines, and Passenger Railways have been excluded from Premium and Premium Plus rates under the “Mid Submission Level” interchange program. Cruise Lines have been added to the “Commercial Electronic – Passenger Transport” interchange program. Discover does not freely provide its interchange rates to the public.

American Express Interchange Adjustments April 2018

Below are the updated interchange fees for American Express card types as of April 2018. See the bottom of this section for a general summary of these changes.

American Express Interchange Fee Increases

American Express did not increase any of its interchange fees during this update.

American Express Interchange Fee Decreases

American Express did not lower any of its interchange fees during this update.

New American Express Interchange Fees

American Express did not add any new interchange fees during this update.

American Express Interchange Summary

American Express has not changed any of its interchange fees or introduced any new interchange fees. Interchange fees on all American Express transactions should remain the same until October 2018, but certain qualifications have been changed. Petroleum & Petroleum Products – Wholesale Distributors (MCC 5172) have been added to the “Business-to-Business / Wholesale” interchange program, and Digital Goods – Large Digital Goods Merchant (MCC 5818) businesses have been added to the “Mail Order & Internet” interchange program. American Express does not freely provide its interchange rates to the public.

Are you paying different rates than the ones released by Visa, MasterCard, Discover, and American Express? Let us know in the comment section below.

About The Author

Phillip Parker

In the late 2000s, as a broke college student struggling to make ends meet, I was contacted by a merchant services company after uploading my resume to a job listings website. This company promised substantial commissions and ongoing residual income for simply persuading businesses to accept credit card payments. It seemed straightforward enough—after all, what business doesn’t need to process credit card payments? Following a phone interview with a persuasive “sales director,” I found myself embarking on what I believed would be an easy job that would significantly boost my bank account with reliable monthly income and large sales commissions. However, the lessons I learned would profoundly change my life in ways I could never have imagined.

After completing my sales training, I hit the ground running, eager to make sales. This broke college student was determined to improve his financial situation! My first attempt at a cold call, with no prior appointment, ended with a burly man in his 50s yelling at me to leave, claiming he had been “totally robbed” by someone like me before. As I hastily exited, puzzled and intimidated by his reaction, I couldn’t help but wonder what he meant. Throughout the day, I encountered similar hostility from other business owners, all expressing disdain for the industry I had been so excited to join that morning. Confused and curious, I decided to shift my approach from selling to listening.

I quickly uncovered that the merchant services sector was riddled with unethical practices, including hidden fees, deceptive marketing, fine-print traps, and much more. It dawned on me that I had nearly been tricked by a dubious company into selling overpriced services under contracts with long-term commitments, all without being fully aware of what I was promoting. Outraged, I resigned from that company but learned that there were indeed ethical credit card processing companies that treated their clients fairly. Over the next four years, I worked for one such company, assisting hundreds of businesses in securing cost-effective processing solutions. Yet, I also met many more who had been misled and trapped in onerous service agreements. Determined to help people steer clear of these unscrupulous providers, I launched this website in my spare time, dedicating myself to researching and sharing my findings on every merchant account provider I could investigate.

Gradually, more and more business owners began to discover my articles. As word spread, search engines started to rank my content highly, amplifying its reach. My efforts were making a difference! Eventually, the website garnered enough traffic to enable me to leave my job and focus on it full-time, a journey that has now spanned over a decade. This path has not been without its challenges; unscrupulous company owners have tried to intimidate and sue me into silence on several occasions. Yet, I have stood firm against each threat. Here I am, continuing to publish reviews and articles, hoping to safeguard others from the pitfalls of the credit card processing industry.

If you believe in my mission and wish to contribute, please share my articles on your websites and social media. Thank you for visiting!

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