April Interchange Changes to Your Credit Card Processing

Every April and October the credit card processing industry undergoes pricing changes to the Interchange (wholesale pricing) levels for various industries.  Twice a year, the credit card issuing associations reserve the right to adjust different Interchange levels based on economic changes, industry trends and consumer usage.  These changes are made to help different industries pay less in fees, however credit card processors use this pricing change as an opportunity to increase fees paid by their customers. 

The Interchange fee is a term used in the credit card processing industry to describe a fee paid by banks for the right to accept credit card transactions. Typically, it is a fee the merchant's bank, known as the "acquiring bank" pays a customer's bank known as the "issuing bank".  These fees represent approximately 90% of your credit card processing fees.  Other fees include the Visa and MasterCard Access and Network Fees and the credit card processor fees.

Every merchant should review their credit card processing in May or June to ensure they are receiving the lowest credit card processing fees with true Interchange Pass-Through.  Unfortunately, banks and credit card processors will often add a 10-25 basis point surcharge (if not more) to merchant pricing, however the change will be added to the Interchange levels, not the transaction fee.  Unless a merchant is trained to properly analyze Interchange Pass-Through levels, it is very difficult to determine whether or not your processor has increased your rates and fees.  

Unfortunately, many credit card processors reserve the right to increase their merchant’s rates and fees.  All merchants should review the Terms and Conditions of their merchant agreement to determine the likelihood and frequency of pricing increases.  Many merchants are under the impression their pricing is fixed and not subject to change until an analysis is performed on their statements proving the pricing increase. 

CIOMA is committed to changing the market trend of the credit card processing pricing "bait and switch".   CIOMA has partnered with North American Bancard who is one of the largest wholesale companies under First Data and specialize in the fuel, convenience and auto repair industries.  They have a direct partnership with the Buypass network and have the program, management and pricing to offer the best credit card processing program available in the market today.  Every merchant agreement has pricing pre-negotiated by CIOMA and an addendum stating pricing is fixed and NOT subject to change.

If you have been with your credit card processor for over 3 years your fees are likely 25-35% too high and you could be saving $500 to $800 per month with the new CIOMA program.

CIOMA members will be able to take advantage of the following pricing:

All merchants will receive a comprehensive matrix of all Interchange Pass-through rates and fees.  The CIOMA credit card processing program values pricing transparency and the dedicated Relationship Manager will assist to explain the various Interchange Pass-Through levels and credit card pricing categories.  

The program also includes the following unbeatable terms:

• Month to month program with No cancellation fee.
• No set-up fees
• No annual fees
• No monthly minimum fees
• Lowest industry pricing – Guaranteed! 
• Up to $300 towards new equipment
• Up to $300 towards conversion of existing processor
• Transaction pricing will be fixed for life and never subject to change
• Dedicated Relationship Manager who will manage the entire conversion process and be your single point of contact. 

Contact David Howarth, Vice President with First Data / North American Bancard today at 415-867-9569 or at dhowarth@firstdataglobal.com today to receive a free detailed savings analysis and to discuss the program in greater detail.