October 2018 Interchange Fee Increases & Decreases

October 12, 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 may 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 October 12, 2018, and they can be expected to last until mid-April 2018 barring a rare January 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 the April 2018 interchange update.

Visa Interchange Adjustments October 2018

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

Visa Interchange Fee Increases

Visa has increased the Assessments fee that it charges on all credit card transactions. This increase will take effect on January 1, 2019. It will increase the fee from 0.13% plus $0.0195 per transaction to a fixed 0.14%.

Visa Interchange Fee Decreases

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

New Visa Interchange Fees

A Visa Partial Authorization Non-Participation Fee of $0.01 per transaction now applies to Visa and Interlink Automated Fuel Dispenser (MCC 5542) transactions where the Partial Authorization Indicator = 0 (partial authorization not supported) or is missing.

Visa Interchange Summary

After January 1, 2019, all businesses will pay a slight increase in the Assessments fee charged on every single credit card transaction. Fuel stations classified under Merchant Category Code (MCC) 5542 will now pay $0.01 per transaction on every transaction where the customer's card does not clear the $1.00 partial authentication fee before pumping. There are no other fee increases or decreases.

Visa has also changed which interchange programs certain MCCs can qualify for as follows:

Religious Organizations (MCC 8861) may now qualify for the CPS/Retail 2 Debit/Prepaid rate of 0.65% plus $0.15 per transaction
Religious Organizations (MCC 8861) may now qualify for the CPS/Charity rate of 1.35% plus $0.05 per transaction

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 October 2018

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

MasterCard Interchange Fee Increases

MasterCard did not raise any of its interchange rates during this update.

MasterCard Interchange Fee Decreases

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

New MasterCard Interchange Fees

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

MasterCard Interchange Summary

MasterCard has not changed the rates that apply to any specific interchange program. It also has not changed its MCC qualifications. Interchange fees on all MasterCard transactions can be seen here.

Discover Interchange Adjustments October 2018

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

Discover Interchange Fee Increases

Discover did not raise any of its interchange rates during this update.

Discover Interchange Fee Decreases

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

New Discover Interchange Fees

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

Discover Interchange Summary

Discover has not changed the rates that apply to any specific interchange program. It also has not changed its MCC qualifications. Discover does not freely provide its interchange rates to the public.

American Express Interchange Adjustments October 2018

Below are the updated interchange fees for American Express card types as of October 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 has created an “Emerging Market” interchange program with the following rate tiers:

Credit Base Tier 1: 1.43% + $0.10 per transaction
Credit Base Tier 2: 2.05% + $0.10 per transaction
Credit Base Tier 3: 2.70% + $0.10 per transaction
Credit Non-Swipe Tier 1: 1.43% + $0.10 per transaction
Credit Non-Swipe Tier 2: 2.05% + $0.10 per transaction
Credit Non-Swipe Tier 3: 2.70% + $0.10 per transaction
Credit Tier 1 Non-US: 1.83% + $0.10 per transaction
Credit Tier 2 Non-US: 2.45% + $0.10 per transaction
Credit Tier 3 Non-US: 3.10% + $0.10 per transaction
Credit Non-Swipe Tier 1 Non-US: 1.83% + $0.10 per transaction
Credit Non-Swipe Tier 2 Non-US: 2.45% + $0.10 per transaction
Credit Non-Swipe Tier 3 Non-US: 3.10% + $0.10 per transaction

American Express Interchange Summary

American Express changed its existing interchange fees, but it has created an entirely new “Emerging Market” fee program. The business types that may qualify for this program include Direct Marketing – Insurance Services (MCC 5960); Direct Marketing – Continuity/Subscription Merchant (MCC 5968); Insurance Sales, Underwriting, and Premiums (MCC 6300); Elementary and Secondary Schools (MCC 8211); Colleges, Universities, Professional Schools, and Junior Colleges (MCC 8220); Child Care Services (MCC 8351); Court Costs, Including Alimony and Child Support (MCC 9211); Fines (MCC 9222), and Government Services (Not Elsewhere Classified) (MCC 9399). 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? Find and eliminate hidden fees without switching with our free independent statement audit.

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!

Follow Phillip Parker

Reader Comments

Tell Us What You Think

Tell Us How They Treated You

Sharing your experience influences our rating and helps other business owners make informed decisions. Please take a moment to tell us if they are serving you well. Your email address will never be published, shared or sold. We only use it to authenticate that you are a real person and, if you select the option for it, to let you know if someone replies to your comment. Required fields are marked *

Copyright

Any unauthorized copying and reproduction of the content of this page, including all meta data and computer code, is strictly prohibited. While the information in the above article is believed to be accurate as of its publish date, the author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is,” and without warranties. Any and all use of trade names and/or marks are for identification purposes only and shall not be construed as a claim of affiliation, or otherwise, with CardPaymentOptions.com, Inc. ("CPO") in any form. The sole purpose of the material presented herein is to alert, educate, and inform readers. It is not intended as legal or financial advice. We may earn revenue if you obtain services from a provider that we recommend. See this page to learn how we support our operations.