From September 1st, Visa is planning to remove the interchange cap on debit cards. This means for certain businesses they will have to pay up to 6x more per transaction.
Visa are removing their fixed rate cap of 50p, to a percentage value rate of 0.2% + 1p. This mean’s for a £5,000 transaction, the total fee will amount to £10, a 1900% increase.
This interchange costs is what Visa levies on acquirers such as Worldpay, Barclaycard and Stripe. The change in rate may affect the cost of transactions for consumers, depending on how much these services want to profit on the interchange. Learn more here.
Good news for SmartTrade App users is that the change will not affect their card rates. SmartTrade App users can still enjoy a rate of 2.15% + 20p on the Solo Plan, 1.85% + 20p on the Business Plan and 1.75% + 20p on the Enterprise Plan for Visa, Mastercard or Amex’s.
Plus, you can pass the card fees on to get 0%! Find out more here