Business Card Tier Restructuring and Rising Interchange Costs

The card brands typically adjust their rates and fees twice per year, in April and October. Due to Covid 19, the card brands have delayed some but not all increases and changes until April 2021. The resulting increase in cost is directly related to card type elimination and the changes specific to B2B Card-Not-Present transactions. All the companies we engage with tell us that they process in a manner to achieve Level III interchange rates.

In the Business Card category, many of the cards that could have qualified for Level III interchange rates no longer can due to the card brands eliminating them in 2019. With the card brands’ removal of Level III capabilities and elimination of several card type categories, the ability to maintain or reduce your interchange fees has become a challenge.

First and foremost, it is important to understand that beginning April 2021 some of the interchange costs are literally out of your control.