Card fees increase From Jan 2020
Fees and rates often fluctuate and change in the banking industry. Visa and Mastercard have announced a new scheme fee schedule which will take place January 1st, 2020.
The 2 major card providers are Visa and MasterCard, and their fees are paid by acquirers like WorldPay, First Data, Barclaycard, AIB Merchant Services, Elavon, EVO payments, Chase Paymentech, Paysafe, Global Payments, and other acquiring banks. Card scheme fees are a cost to your acquirer and are considered when setting the merchant service charge (MSC) (Read more about merchant fees here) rate they charge customers for each transaction.
The big change is the removal of the “Multi-Currency Non-End to End fee” which will be replaced with a “Dynamic Currency Matching Fee” which happily, nexpay customers will not incur.
VISA will make some larger changes in January 2020:
• The “Card Present/Card Not Present” (Read more about card not present transactions here) Service fee replaces the base acquirer association fee, the base cost for Card Present is now 0.018 % for Consumer Debit (up from 0.01%) and the base cost for Card Not Present is now 0.028% (up from 0.02%). For example, £100k of transactions will have an additional £800 in processing fees.
• PAN keyed card present transactions (Especially important for anyone who may be taking payments within the hotel and hospitality industry) will incur £0.09 per transaction
VISA have further changes which will come into effect in April, July and October 2020, updates to follow as we know out more.
Contact us here to find out more.