In recent years, merchants across the globe have been grappling with the issue of rising interchange costs. These costs refer to the fees that merchants are charged by credit card companies every time they process a card transaction. With more and more people opting to pay with plastic, these fees can add up quickly and eat into a merchant’s profits.
Part of the reason for the rise in interchange costs is the increasing popularity of rewards credit cards. These cards offer users cash back, points, or other perks for using them, which makes them more attractive to consumers. However, these rewards have to be paid for somehow, and that cost is passed on to the merchants in the form of higher interchange fees.
Another factor contributing to the rise in interchange costs is the growing complexity of the payment processing system. With so many different players involved, each taking a cut of the transaction, it can be difficult to keep track of who is charging what. This lack of transparency can make it difficult for merchants to negotiate better rates or even understand what they’re being charged for.
So what can merchants do to mitigate the impact of rising interchange costs? One option is to get your complimentary rate review from OnePay. Merchants should also be aware of the different types of cards and the associated fees so they can make informed decisions about which cards to accept. Finally, merchants can consider passing on some of the cost to consumers by charging a surcharge for credit card transactions.