card brands rolling out big Changes to Swipe Fees 4/2021

---

Card Brands Are Planning the Biggest Changes to Swipe Fees in a Decade.

The upcoming rate hikes were previously scheduled to take effect last year, but delayed due to COVID and will now be implemented April 2021.

Standard Interchange Increase Levels

•  When you process a customer’s payment of $1000, the Standard Visa fee will go up from $29.50 to $31.50
• The same $1000 transaction on a Visa Business Card would see a fee increase from $25.00 to $30.00

Many businesses, particularly those who accept business-to-business (B2B) transactions or card not present transactions (eCommerce), will find that these increases significantly affect their profitability. The biggest question for merchants when changes like these are looming is whether or not to raise prices to recoup the profits they’ll be losing to higher fees. 

  This rate increase will add to the squeeze felt by restaurants, retailers and other merchants already struggling through the Covid-19 pandemic. As increasing numbers of customers switch to online shopping during the pandemic—a trend heralded for keeping businesses afloat when people are reluctant to venture inside stores—it is also creating extra costs for merchants who pay higher fees on eCommerce purchases.