Monday, April 10, 2006

Anatomy of Interchange Fees (

Regularly, we hear from merchants with new protests as the battle against Visa and MasterCard mounts.

A St. Cloud, MN retailer advised that their "Notice of Change in Terms for Bankcard Processing" from a credit card processor is now charging for, literally, nothing. When a retailer attempts to authorize an electronic card transaction, they will now be charged, even if the card is declined. The fee per authorization for a declined card is now 10-cents and the First Data® merchant services employee provided the store owner with an address to complain about this latest charge to Visa® and MasterCard® .