Major changes to interchange fees, like those being proposed in Australia and other markets, will have a significant impact on not only card issuers, but the entire payments industry. Read more from our Director of Product Marketing, Steve Gilde, on the ways organizations must adapt.
Credit card interchange fees remain a hot topic within the payments industry. Despite the record $6.2 billion settlement reached last year in the class action suit that was filed against Visa and Mastercard, the debate rages on about how card companies operate and how they set and administer fees.
The Australian Government Productivity Commission has recommended that interchange be abolished by the end of 2019. Those of us who have been around the industry for a long time can recall the original purpose for interchange fees and the value provided by this model: to stimulate the issuance and use of credit cards as a payment instrument.