Increases to Visa and MasterCard Processing Fees Beginning October 2013

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Increases to Visa and MasterCard Processing Fees Beginning October 2013

Visa and MasterCard have just announced additional processing fees that will impact all merchants beginning with transactions processed as of October 1, 2013.  The fees will add $0.0025 for each settled transaction for both Visa and MasterCard.  For Visa, this is known as the Base II Fee and MasterCard refers to it as the Settlement Fee.  In addition to these settlement fees, Visa will be tacking on $1.00 image document fee, assessed when disputing a chargeback, while MasterCard is adding $0.45 per chargeback support document.

The impact of the settlement fees will essentially be to add $2.50 per 1,000 transactions settled.  The additional chargeback fees will impact the representment process, but will not have any impact on chargebacks that are not being represented.  Depending on price point and success rates, it could make representing chargebacks less lucrative for some merchants.  Those with high price points and good success in disputing chargebacks will likely still want to continue.

If you have any questions about how this will impact your specific business, please reach out to your main contact at PLC, or contact us at info@paullarsenconsulting.com.

By | 2013-10-01T15:12:43+00:00 October 1st, 2013|Categories: Blog Post|Tags: , , , , |0 Comments

About the Author:

Melanie Stout began her career at Synapse Group nearly 20 years ago, blazing the trail for continuous service magazine subscriptions. After Synapse Group, she successfully built and launched the first direct-to-consumer recurring revenue stream at WebMD.com. Prior to PLC, Melanie was Vice President of Marketing and Communications for a SaaS-based healthcare IT company. She has combined her knowledge of the subscription economy with B2C, B2B, and B2P marketing, to help companies of all sizes increase conversions, improve retention, and reduce operating costs. Melanie has participated as a panelist at the CNP Expo and as a moderator at the Subscription Insider event, Mastering Payment Processing for Recurring Revenue.