There is big news for merchants that process large volumes of small dollar transactions. Interchange rates are set by the big names in the credit card industry (Visa, Mastercard, etc.). These rates are the largest component of fees paid by merchants who accept credit cards. Effective October 2010, most merchants will be eligible to qualify for CPS/Small Ticket program if the majority of their transactions are under $15. This will result in a decrease of interchange fees paid. The new rates will be 1.65% + $0.04 for credit transactions and 1.55% + $0.04 for debit transactions. There is an increase in the percentage and a decrease in the cents per transactions. If a merchant tends to have a high volume of small dollar transactions, Connected Pay recommends increasing the percentage per transaction and lowering the cents per transaction. This announcement by Visa is exciting news for Small Ticket merchants.
