PIN-Based Networks Hike TheirRates
CHICAGO - (06/28/04) -- Most of the PIN-based point-of-salenetworks have raised their interchange rates to match or exceedthose of VISA USA's Interlink, according to ATM&Debit News, asister publication of The Credit Union Journal. Among those hikingtheir interchange rates since VISA are NYCE, Star andAccel/Exchange. For example, NYCE will adopt a new tieredinterchange system July 1 that caps rates at 65 cents pertransaction--the highest PIN-based cap for merchant acquirers topay issuers. The NYCE rate hike follows a Feb. 1 move by Star, thelargest PIN-based network. As of Feb. 1, Star issuers receive 0.65%of the sale plus 12 cents, with a 45-cent cap, an increase from the34-cent cap in 2003. Issuers of Accel/Exchange, owned by Fiserv,now receive 0.6% of the sale plus 10 cents, capped at 45 cents fornon-supermarket transactions. The top Accel/Exchange fee had been31 cents. The Armed Forces Financial Network also raised itshighest interchange fee to 18 cents for non-supermarkets, up from a14-cent cap. And MasterCard International's Maestro network jackedup its top interchange rate from 29 cents to 45 cents.