How do I even start to understand my interchange fees? Is there software that can help me or an index of interchange fee charge codes?
Answers
Hi,
I worked at a large payment processor for four years and now head up a payments consulting firm. I'm not aware of any software that can help merchants benchmark or optimize interchange fees. Although there is a uniform set of interchange categories, as defined by Visa and MasterCard, each processor adds their own proprietary codes or abbreviations to the interchange names.
We maintain a database of interchange codes from most major acquirers. If you send me an email with the name of your acquirer, I could send you a table of interchange codes that would be relevant for you. My email is [email protected].
My firm has proprietary software that analyzes and optimizes interchange for clients. At this time, we do not sell this software but we may be able to help you. Lastly, our company blog has many articles that deal with interchange and card processing fees. You may find the following one particularly useful - http://www.optimizedpmts.com/blog/index.php/understanding-and-managing-your-payments-effective-cost/
regards,
Anand
Anand - I read one of your previous comments regarding CC processing fees. I am in the process of reviewing my processing fees and would like to understand the charges better. My current processor is Blue Pay with Auhorize.net.
Can you send me the table of interchange codes that may be applicable to me?
Thanks in advance,
Rick
1
Rick,
Expense Reduction Analysts (ERA) is a firm that has CC experts who can help you understand all the fees and work on your behalf to get the best rates (and most accurate rates). They can create the transparency you are looking for and suggest strategies for future improvement.
My company processes a large number of cc transactions and ERA has been very helpful.
Best,
Brett
Rick,
BluePay is an ISO(reseller) of Wells Fargo merchant services. Wells Fargo in turn has a joint venture with First Data. So First Data is processing all of your transactions.
Here's the First Data/Wells Fargo definition of interchange fees. If you need help understanding this, let me know. My contact info below...
http://www.optimizedpmts.com/presentations/Wells_Fargo_2010_Qualmatrix.pdf
regards,
Anand Goel
Optimized Payments Consulting
www.optimizedpmts.com
[email protected]
404-542-8520 phone
888-846-1305 fax
Any new developments over the past few months? Where are they at with enforcing/implementing the Durbin Amendement?
The next date/milestone for the Durbin amendment is July 21, 2011. This is the date by which the Federal Reserve is supposed to implement the some of the provisions in the Durbin amendment. It is likely the Fed will announce their finalized rules on interchange caps and network exclusivity before this date.