MasterCard Interchange updates October 2012- prepaid rates rise

Interchange updates are typically twice per year and the Fall release is now in effect. MasterCard debit and prepaid have shared the same interchange rates until now.  They’re now separated. Prepaid rates are up, as is their use by consumers. Prepaid card use rose by about 18 percent in 2011 as consumers dropped traditional banking products such as checking accounts with higher fees, according to a study by Pleasanton, California-based Javelin Strategy & Research, a market-research firm.


Current Interchange

October 2012

Consumer Key-Entered Debit

1.64% + $.16

1.60% + $.15

Consumer Merit 1 Debit

1.64% + $.16

1.60% + $.15

Consumer Key-Entered Pre-Paid

1.64% + $.16

1.76% + $0.20

Consumer Merit 1 Pre-Paid

1.64% + $.16

1.76% + $0.2

Pre-paid cards are costly for consumers to use and now they are getting more costly for merchants to accept. This is in response to lower regulated debit fees, which are capped at .05% and $.20 per transaction.

We maintain links to the most current interchange rates here.

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