Efficient Interchange(EI)

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We help merchants to reduce or eliminate their processing fees as much as we can, in addition to efficiently managing the interchange fees.

Overview:

Q PaymentZ firmly believes in always giving the best to its customers. Bringing to you the new and unique ‘Efficient Interchange(EI)’ Program. Not only do we strive to bring down your processing fees, but we also aim to bring down the interchange cost of transactions that you process.

Visa & MasterCard require additional information beyond the total sale amount to qualify the Commercial Card transaction for a lower interchange rate. This information includes the sales tax amount, which, if provided, reduces the merchant’s interchange cost. We will compute and submit the required sales tax to the Card networks for applicable Commercial Card transactions. When this additional data is provided, it allows these transactions to qualify for a lower interchange rate.

Benefits:

 

Merchants receive the best possible interchange category and rate per purchase for the card type accepted by submitting line-item information to Visa and Mastercard.

 

Our Efficient Interchange(EI) brings potential savings, sometimes even to a max of 90 basis points (0.90%) from Interchange.

Features:

Transactions are identified by card Bank Information Number (BIN) range, ensuring the appropriate information is defaulted and passed to card issuers.

Qualification is based on transactions that are identified by card type.

Top 5 Reasons for Overpayment:

Submitting transactions with missing data elements

Not including data from authorization, i.e. CPS data and POS flags, in settlement (This is nothing but meeting the set requirements to result in lower interchange fees)

Settling transactions for an amount more than 15% different from the authorization

Not reversing an authorization that was never settled

Not sending translation-level required data for Business, Corporate, and Purchase cards

How It Works

A business with an interchange cost plus pricing structure pays the wholesale interchange processing rate plus a fee to their processor, 2.60% plus $0.10 per transaction. When an interchange rate is optimized with required transaction-level data, your business receives the benefit.

 

Requirements of Managing Fees

 

Providing as much information as possible about the customer using the card and the products being purchased can change the rate category of a transaction and, therefore, lower interchange fees while improving security.

Model Interchange Rates:

 

The usual bank fee of 2.5% on a $40 transaction results in a $1 Interchange fee.
On that $40 transaction, $ 1 goes towards interchange fees.

$0.70 goes to Cardholder's Bank

$0.20 goes to Acquiring Bank

$0.10 goes to Issuer (Visa/MasterCard)

Settlement and Reconciliation

Your business is liable to fees and downgrades if the following occurs during settlement and reconciliation:
  • Not settling within 2-3 days of authorization
  • Submitting transactions with missing data elements
  • Authorization amount varies from the settlement amount (except merchant types that grant a variance for tips)