Interchange fees

Visa typically adjusts its interchange rates every April and October, but this year it is getting an atypically strong response.

Higher rates are looming for transactions on e-commerce sites, while merchants in certain services categories, such as real estate and education, will see fees decline, according to a document Visa sent to banks.

Oklahoma lawmakers' decision last month to drop the state's surcharging ban was yet another signal that U.S. merchants have the final say in whether to apply extra charges to credit card transactions to offset interchange fees.

Though many merchants remain wary of alienating their customers with fees, others now see an opportunity to recoup the growing costs associated with accepting plastic.

The U.S. District Court in New York has issued final approval of an estimated $6.2 billion settlement in the merchants' class-action lawsuit over swipe fees, a 15-year-long case against Visa and Mastercard. But the struggle between merchants and the card brands doesn't end here.

Jane Fraser, Citigroup's CEO of Latin America, has helped the bank cut a deal with Mexico's new president that will result in a loss of swipe fees, but may help it gain customers long-term.

Accounts that offer high interest rates can bolster fee income and lower noninterest expenses, though credit unions have to carefully watch these products to ensure they actually make money.

For ISOs, it's hard to watch someone else deliver payment services in their place.

Interchange rates on payments in the fuel and energy sectors can be so complicated that energy marketers can lose thousands of dollars a year because of mistakes they make in coding their authorized credit card transactions.

To make a credit card top of wallet and build interchange income, credit unions must develop trust, provide great service and ensure the card works every time.