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An Update on Credit Card Interchange Rates

Written by Megann McDaniel

July 1, 2022

credit card interchange rates independent retail

There is one constant in this world: change. We lived through it over the past two years as COVID created a lot of sudden change. But, if you look just a little bit loser, you can find certain areas where those difficult times actually created some stability for the independent retail community. Credit card networks (Visa, Mastercard, AmEx, Discover) typically assess their fees twice a year to determine if they need to be increased or decreased. However, due to COVID, the card networks haven’t had any major adjustments in over two years.

As we know, though, all good things must come to an end.

Card networks have now made their first adjustments since the beginning of the pandemic. Not all adjustments were negative, and some retailers may even see some fees decrease. The adjustments have been attributed mostly to costs related to fraud prevention, innovation, and rewards tied to the cards.

Despite this, Nationwide can proudly stand by our promise that our rates are locked in and do not creep up, as with most processors. Please note that our credit card processors — Payroc and Wells Fargo — are not raising their rates, yet you may see a change in your fees due to the pass-through fees from the card networks. All credit card processors must pay these fees — none are immune.

As a reminder, during the pandemic credit cards allowed businesses to weather the storm by allowing customers who wanted contactless transactions and/or to use their credit cards to make online purchases. While we may not welcome the adjustments made by the card networks, we have to stop and appreciate their decision to keep rates unchanged during a time when change felt like the only constant.

If you are not currently processing with one Nationwide’s vendor partners, this is a great time to get a free savings analysis. The average savings for Nationwide Members is approximately $9,000 a year. To receive your free analysis, email two months of complete statements to Megann McDaniel, megann.hayes@nationwidegroup.org.

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