April 2008 Interchange Rates

Happy Spring! There are a couple things in life we can always depend on. One is that April 15th is always the latest tax filing date (unless of course, you get an extension. And, twice a year, in October and April, Visa and MasterCard review their Interchange Rates. And, this spring, they reduced rates.....NOT!!!! As you might imagine, that's not typically the way it goes. More often than not, we see increases of some sort but this time around we see something a bit different happening.

It's not so much that Interchange Rates increased this time around, as much as many more new "categories" were added. MasterCard, for example, has added Merit I Insurance and Real Estate Interchange categories. Visa, on the other hand, has added numerous new categories, primarily for Internationally Issued Card Transactions.

So, where do you stand in all this stuff? Do you even understand what "Interchange" is and how it affects the rates that you pay to accept credit and debit cards in your business? If you don't then it's about time that you found out. You'll find different sites referred to on this blog that will go a long way in EDUCATING you in the world of credit card processing. Go to these sites and learn all that you can.....it will be worth thousands of dollars in your pocket over the life of your business.

As I've reviewed this current Interchange situation I have discovered that merchants are being hit in a variety of ways. You may received a notice (typically via a "statement message" on your monthly statement) that came through in February or March. The problem with this, as I so often discover, is that many merchants never read or try to decipher their credit card processing statements. Consequently, the "notification of increase" may have just slipped by you.

I've seen some statements that simply state that "your rates will be increased by .XX% beginning April 2008". Others state that some categories, like "Qualified or Tier 1 and Tier 2 rates will not be affected, however some other types of transactions will now be Mid-Qual, Non-Qual or Tier 3 or Tier 4". What the heck does all that mean? Do you understand it? I DO! It means the processor is simply making adjustments in their favor. Now granted, they are all in business to make a profit, and rightfully so.....you are too. But, unless you are thoroughly educated on how this business works and know the questions to ask, you may be getting "hosed". Sorry to be so blunt, but that's reality.

Let's face it! If you're in business selling any kind of goods or services, you need to accept credit and debit cards. Rates continue to increase and the economy continues to slow down so making a buck is becoming more and more difficult. How would you like to improve your bottom line without even increasing your sales? It's simple, reduce your costs! And, one way to do that is by knowing how the credit card processing industry truly works and putting yourself in a better position to be able to negotiate the absolute best program available for your business.

Take a CLICK on over to my website where you'll find out more than you ever knew about credit card processing. I promise you.....I WILL NOT TRY TO SOLICIT YOUR BUSINESS! If you want to get more personalized help from me, my contact information is available.

Well, that wraps it up for now.....thanks for stopping by and please, be sure to tell all your business associates about my blog and websites.

BE BLESSED AND BE A BLESSING