Credit Card Interchange Rates 2021: What You Need to Know

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In early March 2021, the news of interchange rate hikes first broke. However, towards the end of the month, Visa and Mastercard reversed their decision and announced that they will be postponing their rate increases for another year.
So ow much of an increase can you expect in 2022?
The short answer: it depends. Interchange rate calculations are complex and take into account a number of factors, including card types, industries, methods of payment, and more.
With Visa, the highest rate generally used to be about 2.95% and in the future, it will likely be 3.15%. As a ballpark though, you can expect a net increase of around 15% (possibly more).
As a simple example, let say a customer spends $1,000 at your business using a B2B card. With the old rates, you’d be paying around $25 for that transaction. With the new rates, your cost will increase to $31.50.
What can you do when credit card companies raise their rates?
An increase in interchange fees can put a dent in your profitability, so it’s important to take immediate steps to save on payment processing costs.
Consider the following: use a payment processor with the right pricing model, use a gateway that can get level 2 and level 3, and consider programs that may qualify you for lower interchange rates.
At Payment Depot, our mission is to help merchants access lower credit card fees. We do this by giving you access to wholesale payment processing rates and by being completely transparent with our pricing.
Get in touch with us and we’ll analyze your merchant statement for free + recommend ways on how you can save.
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