Interchange Rate Programs

 

Financial institutions that provide card acceptance services to  merchants are typically referred to as “acquirers.” Although MasterCard and Visa have no involvement in acquirer and merchant pricing policies or agreements, it is generally understood that interchange fees are one component of the Merchant Discount Rate (MDR) established by acquirers, which is paid by merchants to acquirers in consideration for card acceptance services.

Interchange rates are established by MasterCard and Visa, and are generally paid by acquirers to card issuers on purchase transactions conducted on credit cards. Interchange rates are only one of many cost components included in a MDR, and are a necessary and efficient method by which the card associations maintain strong and vibrant payment networks.

The card associations periodically adjust interchange rates to reflect changes in the credit card marketplace. Setting interchange rates is a challenging proposition that involves an extremely delicate balance. Visa normally makes their changes in the fall of each year, and MasterCard in the spring. Accordingly, here is the most recent MasterCard rates and criteria effective as

of April 2010...  click here