There were recent increases to interchange rates in April that may affect your subscription or SaaS business. Here are the key rate changes you should be aware of.  

Changes to Visa

The most notable changes for Visa include the Visa Product 1 CNP consumer and consumer rewards, signature, and signature prefer cards, where fees went up by 5%.  

The VISA CPS KEYED ENTERED, which applies to online, over the phone, and virtual payments, also saw a 5% increase, but the impact of this change will likely be balanced with lower recurring fees.  

Most of the increased fees are primarily applicable to niche industries or card types and won’t significantly impact most merchants.  

Changes to Mastercard

For Mastercard, Small Ticket interchange fees decreased, while a few others saw an average 2% increase in the consumer and commercial interchange category. These include specific fees to industries such as daycare, travel, transport supermarkets, and car rentals.  

Like Visa, fees for manually entered virtual, over the phone, or online transactions like the M/C KEY ENTERED increased.  

These fee increases come at a time when many businesses are losing subscribers and facing economic hardship. This makes failed payment recovery more important than ever. Businesses need to receive the revenue they expect from existing customers by using an intelligent system of retries that doesn’t harm their merchant account. 

If you have questions about these changes, schedule a consultation with our team. We’d be happy to talk to you about what the increases could mean for your business.