Visa and Mastercard Upcoming Interchange Changes


Interchange is a charge payable by your card processor/acquirer to the bank who issued the card being charged. It makes up c.90% of your card processor’s entire cost base.

They recharge this cost to you and it is the largest element of your Merchant Service Charge (“MSC”) – so if you pay 1.1% for credit cards, c.0.8% of this is the recharge of interchange.


Why are these changes happening ?

The European Union has had a long running battle with Visa/Mastercard to reduce interchange and is finally legislating to cap interchange at c.0.3% for credit cards and 0.2% for debit cards.  Whilst interchange is received by the issuers (bank who issues a card), the rates and rules are set by Visa/Mastercard.

Interchange Plus Pricing Schemes

By setting you up on an Interchange plus pricing system with the world's largest credit card processing company we can pass the interchange decreases immediately to you. Evidence from the main UK acquirers suggests they will seek to boost their own profits by not passing these interchange drops on to merchants.  The only way to be sure is make sure you are on an Interchange plus pricing scheme which we can arrange for you.

What will happen on December 9th 2015

Visa & MasterCard have just announced dates to confirm that they will be reducing interchange on consumer credit cards to 0.3% on the 9th December 2015.  Debit cards including mastercard debit will be capped at 0.2% as laid out in the European Union Legislation.