While Visa and MasterCard attempt to limit the outrage over their windfall profiteering at the pumps, the ineffective rate reductions on gasoline electronic payments, were just met with new rate increases for merchants.
PIN-based debit card fees traditionally were fixed, rather than charging a percent of each transaction, as is the case with signature cards. However, I was just informed by the electronic payment processing company, Chase Paymentech, which handles transactions for ScanMyPhotos.com and 30 Minute Photos Etc. that our rates have again changed. Even though our nation is facing a dire recession and many businesses are forced to close, Visa and MasterCard continue with their unbridled greed at the expense of American retailers and consumers.
In response to our email to Chase Paymentech inquiring about a letter we received in May announcing that PIN pricing changes will take effect on June 1st it appeared that PIN debit transactions will no longer be a low, flat fee of 55-cents. Now it will be a flat fee, plus a transaction fee as well. Today, we received June 2008 statement and it appears that we are no longer paying just $0.55-cents for processing PIN based debit cards but we are now paying $0.20-cents PLUS a percent of the sale depending upon if it is an Interlink, Maestro, Pulse or Star Southeast. The percent that is being passed through is GREATER than if we processed the transaction as a “Signature Based” transaction vs. a PIN based transaction.
See the below recent email exchanges from Chase Paymentech Solutions LLP, in their own words:
“…[S]ome of the debit network fees have changed and these changes will be passed onto you. You have been getting the debit network fees passed onto you (part of interchange pass-thru), so this is not a change.”
“The letter that was sent out is notifying you that some of the debit network fees have changed and these changes will be passed onto you. You have been getting the debit network fees passed onto you (part of interchange pass-thru), so this is not a change.”
“On top of the Pin-based debit network fees which are passed through, I believe the $0.55 would remain the same.”
“This is part of the pin-debit network fees passed through, as described below. Pin-based debit is not always the lowest cost option, since it depends on your transactions amount. If you feel you would like to do signature based transactions, then you can process these transactions either way –pin-based or signature based.”
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