Copyright 2015 Ingenico Payment Services. $name

Transcription

1 $name

2 Table of contents 1. What is Interchange? 2. What are scheme fees? 3. What is Interchange ++ Pricing? 4. What's new? 5. Are there any exceptions? 6. Where can I find more information? Page 1 of 7-16/03/2016

3 1. What is Interchange? Whenever consumers buy something with their card, 4 parties are involved: The consumer The consumer s bank (issuer) The merchant The merchant s bank Both banks perform a series of steps to ensure the payment is processed and transferred securely, and it reaches the merchant promptly. When the consumer s bank sends the payment to the merchant s bank (known as the acquiring bank), it deducts a small fee. This is called the Interchange fee. The fee compensates the issuing bank for a portion of the risks and costs it incurs to maintain cardholder accounts. Page 2 of 7-16/03/2016

4 2. What are scheme fees? The individual payment brands charge a separate assessment fee, which covers the operating costs of managing their network. The scheme fees consist of 3 main components: Acquiring fee Clearing & settlement fee Cross-border fee Additionally, schemes (like Visa or MasterCard) may charge scheme fees for specific transactions (like for example cross-border fees, if a cardholder and a merchant are not located in the same territory). Page 3 of 7-16/03/2016

5 3. What is Interchange ++ Pricing? Payments service providers like Ingenico that operate on an Interchange++ pricing system, pass on the exact Interchange fee + scheme fee that are charged by issuers or schemes during the transaction along with fee that goes to the acquirer for their services. This means full transparency on costs, giving merchants a full view on how much they are charged right down to an individual transaction level. Page 4 of 7-16/03/2016

6 4. What's new? In July 2015, the EU Commission adopted a legislative package proposing PSD2 and a Regulation on Multilateral Interchange Fees (MIF - fees per transaction agreed between the acquiring payment service provider and the issuing payment service provider). Since December 2015, the following changes have been decided: Interchange fees are capped for both cross-border and domestic consumer card based transactions to a maximum percentage of the transaction value, being 0.2% for debit purchases and 0.3% for credit purchases. Transparency regarding card transaction costs will be given towards merchants. Banks and Acquirers have detailed reporting obligations that list the level and amount of MIFs per type of card transaction. Details can be found on their websites: Visa (bottom of the page): MasterCard (bottom of the page): Page 5 of 7-16/03/2016

7 5. Are there any exceptions? The new cap will not apply to: 3-party schemes such as Diners and American Express, so long as the card is both issued and processed within the same scheme. Commercial cards used only to pay business expenses. After three years, the rules will also apply to 3-party card schemes that license other parties to issue cards. Also, the cap only applies to European cards being used for purchase at European merchants. To clarify, this means that a UK card issued in the UK that will be used for purchase at a Belgian merchant will fall under the cap, but a card issued in the US being used in an EU country will not. Page 6 of 7-16/03/2016

8 6. Where can I find more information? Visit the pages dedicated to payment services on the DG Internal Market & Services and DG Competition respective website: Page 7 of 7-16/03/2016