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If the transaction doesn’t include all required information, it can downgrade! Customers are ready for your salon and spa services. Interchange downgrades eat away at small business owners’ profits. The additional cost to process the transaction comes out of the business owner’s pocket. Your credit card processor does not make any money from downgrades. However, things don’t always go according to plan. clearent.com/interchange Who pays for downgrades? A downgrade is when a transaction doesn’t meet the minimum requirements for the target interchange category and costs the merchant more money. What is an interchange downgrade? Downgrade = Higher Interchange Fees Who profits from them? BUSINESS OWNER Ready to learn more? Let’s chat. BANK (Card Issuer) If you see the following terms on your monthly statement it means the transaction downgraded, costing you more money: • EIRF Electronic Interchange Reimbursement Fee • Standard • Non-Qualified Fee Program In July 2020, Visa combined EIRF and Standard into the new Non-Qualified Fee Program. Always batch out your terminal at the end of each day. Perform an address verification on all e-Commerce and hand-keyed transactions. Never settle a transaction without an authorization. In general, don’t authorize and settle transactions with different amounts unless your business accepts tips or you have specific knowledge of card brand rules for your industry where different amounts are allowed. © 2020 Clearent, LLC is a registered agent for Central Bank of St. Louis, MO and Wells Fargo Bank, N.A., Concord, CA. This information does not, and is not intended to, constitute legal advice and is provided for informational purposes only. Contact your attorney to obtain advice with respect to any particular legal matter. But first... What are interchange fees? Interchange fees are the rates business owners pay to accept credit and debit cards. Each transaction has a target category which has the lowest fee for the given transaction type. How can I spot downgrades?
