Bankcard Interchange Increases for '98

 

More bankcard news: If you're not already aware, or if your up-stream organization doesn't share the specific detail, Visa U.S.A., Inc. and MasterCard International have each announced an increase in their interchange rates.

The interchange fees are established by the Associations' Board of Directors and are intended to cover the issuing members' cost of managing their credit card program. The impact will vary for each ISO depending on how much of the increase your bank passes along or if they choose to increase their income at the same time. Assuming no additional increase by your bank, it appears that the overall effect of the increases will be to increase the wholesale cost of bankcard services between five and six percent.

[RETURN]