What’s to stop card schemes from increasing their interchange fee?

In this video,  we dive into credit card interchange fees and regulations.

1. Understanding Interchange Fees:

• Set by card schemes (Visa, MasterCard)
• Capped by EU regulations
• Debit cards capped at 0.2%, credit cards at 0.3%

2. Additional Transaction Fees:

• Acquirer fees beyond interchange
• Complex cost calculations for merchants

3. Transparency in Pricing:

• Essential for merchants
• Clear rules on transaction costs
• Empowers informed pricing strategies

Grasping the Essentials of Credit Card Interchange Fees

In our comprehensive course on transaction processing, we will explore the intricacies of transaction handling, from authorization to settlement, shedding light on the technical processes that underpin every electronic payment.

As we navigate through the four key steps of authorization, capture, clearing, and settlement, you will gain invaluable insights into the secure and efficient processing of transactions.

We will delve into real-world scenarios, such as fuel and airline ticket purchases, to understand how authorization strategies optimize transaction flows.

Additionally, we'll explore the differences between single and dual message flows, uncover the significance of on-us and not-on-us transactions, and examine the pivotal roles of acquirers, schemes, and issuers in transaction processing.

By completing this module, you'll not only gain comprehensive knowledge about credit card interchange fees but also understand how to navigate transaction costs effectively.

Explore this module and more at The PaymentGenes Academy Foundation course to elevate your understanding of the ever-evolving world of digital payments.

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