Tuesday, June 24, 2014

interchange rates

There is a minimum fee associated with credit card transactions. The interchange rate is always going to gobble up ten cents worth of the transaction outside of a percentage. Many who take credit card payments just gamble that there won’t be many transactions for less than ten cents. Others do something about it. I found this which suggests that minimums for purchases may be set for up to ten dollars but that Visa, for example, forces no minimums to be set when others take its card. Visa will blacklist you if it catches you setting minimums for Visa charges. The rates for the three levels of credit card processing are as follows. Note that as the level goes up to accomodate more pricey transactions, a break is given.

  • Level 1: 2.65% + $0.10
  • Level 2: 2.05% + $0.10
  • Level 3: 1.80-1.95% + $0.10

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