As April 2020 Association changes approach, many competitors will use this as an opportunity to raise processing rates. We expect many competitors to surcharge the following two fees:
– Padding Amex Network Fee
– Padding Discover Program Integrity Fee
Watch for competitors to add statement messages similar to this as they pad Amex Network Fee:
SURCHARGE:
EFFECTIVE APRIL 2020, AMERICAN EXPRESS IS INCREASING THE NETWORK FEE BY 0.01%. BASED ON THIS FEE AND OUR OWN BUSINESS CONSIDERATIONS, YOU WILL BE ASSESSED A FEE OF X.XX% OF THE SALES VOLUME FOR AMERICAN EXPRESS TRANSACTIONS, AS APPLICABLE, FOR CREDIT CARD TRANSACTIONS. THIS FEE WILL APPEAR ON YOUR STATEMENT IDENTIFIED AS NETWORK FEE.
The accurate pass-through increase should be 0.01%, correctly mentioned in the first part of the statement message. The surcharge amount is listed on the second part of the statement message. The Amex Network Fee is currently at 0.15% and rising to 0.16%
Watch for competitors to add statement messages similar to this as they pad Discover Program Integrity Fee:
SURCHARGE:
EFFECTIVE APRIL 2020, DISCOVER IS INTRODUCING A PROGRAM INTEGRITY FEE. BASED ON THIS FEE AND OUR OWN BUSINESS CONSIDERATIONS, YOU WILL BE ASSESSED A FEE OF $X.XX PER U.S. MID SUBMISSION LEVEL OR U.S. BASE SUBMISSION LEVEL QUALIFIED TRANSACTION. THIS FEE WILL APPEAR ON YOUR STATEMENT IDENTIFIED AS DS PROGRAM INTEGRITY FEE.
The accurate pass-through fee is $0.05 per transaction downgraded to Mid Submission Level or Base Submission Level interchange categories.
We’ve already identified competitors raising rates. We will continue to publish rate increases by competitors.
Please contact Statements@indigopayments.com with questions.
