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Payment Processing Industry News — December 2024

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Dec 27, 2024

Payment Processing Industry News — December 2024

As we wrap up the calendar year, there are several notable stories in the payments space that are worth your attention. Here’s a summary of those headlines:

Interchange Updates From Visa and Mastercard

Effective January 1, 2025, we’ll see new interchange fees from both Visa and Mastercard.

  • Visa is increasing its Base II Fee from $0.002 to $0.0027.
  • Visa’s Authorization Misuse Fee is increasing from $0.09 to $0.15.
  • Mastercard is increasing its Excessive Authorization Fee from $0.30 to $0.50.

Also effective January 1, 2025, Visa is changing the scenarios for when its Digital Commerce Service Fee will be applied (although the rate of 0.0075%) will remain the same.

It’s worth noting that Visa is also introducing new fee programs and rates in April 2025. You can read more about those changes on our Visa Interchange Rates page

Surcharge Law Updates in Kansas and Colorado For January 2025

Kansas and Colorado have new surcharge laws that go into effect in 2025.

In Kansas, credit card surcharging was previously illegal—although Federal courts ruled these laws to be unconstitutional. So for the past few years, businesses have been allowed to apply surcharges (even though the state law technically prohibited it). 

But as of January 1, 2025, Kansas has updated its laws to legalize credit card surcharging—as long as clear and conspicuous notice has been given to the customer.

Colorado is on the other end of the spectrum. Its existing laws allow surcharging, but tighter restrictions go into effect on January 1, 2025.

Moving forward, merchants in Colorado must include surcharges and other mandatory fees within the advertised price of goods and services. Credit card surcharges can still be charged as a separate line item add-on, but only if the consumer can reasonably avoid the charge (meaning it’s not mandatory).

Read More: Kansas Surcharge Laws | Colorado Surcharge Laws | Credit Card Surcharge Laws by State

North American Bancard Rate Increases

In November, I mentioned that North American Bancard increased its daily discount rate by 0.25% per transaction. Increases continued for the second consecutive month, this time applying other fees. 

Beginning December 2024, merchants who are not PCI compliant will be charged $65 or $75 per month in addition to $145 per year. The monthly non-compliance charge nearly doubled its old range of $35 to $47 per month.

Merchants using North American Bancard may also see a new $169 annual regulatory fee appearing on December 2024 statements. 

Read more about North American Bancard’s rates here.

PayPal Plans to Increase Braintree’s Pricing

For those of you who don’t already know this, PayPal owns Braintree.

During the UBS Global Technology Conference, PayPal announced to investors that they would leverage pricing power to increase margins for Braintree. 

No specific rate increases or dates have been formally announced just yet. But I expect merchants using Braintree to get notified at some point during 2025.

Hopefully the rate won’t be too high. If you’ve read my Braintree review, you know how much I like them and think they generally offer great pricing—especially for the robust technology you get in return. 

Toast Expands Strategic Partnership With Uber

Earlier this month, Toast announced its plans to expand its strategic partnership with Uber.

The goal here is to provide restaurants and consumers with more flexibility for delivery options while also helping restaurants reduce costs. 

This expanded partnership will allow restaurants to save money on delivery fees and expand its delivery radius to customers to areas that were otherwise not supported on UberEats. 

In addition to UberEats, restaurants can also be offered services from Uber Direct via Toast Delivery. 

Here’s the full press release from Toast

Fiserv’s CEO to Run Social Security Administration

Fiserv CEO Frank Bisignano has been appointed by President-Elect Donald Trump as the Commission of the Social Security Administration. 

Bisignano will continue his role as CEO of Fiserv until he officially takes over those duties for the SSA. In the meantime, Fiserv will be looking for a replacement. 

Here’s the full press release from Fiserv.

Lightspeed Announces Strategic Reorganization

Lightspeed Payments is planning a strategic reorganization that will impact about 200 employees.

The plans are designed to prioritize certain resources, cut costs, and maximize long-term growth potential as early as 2025.  

Intuit to Partner With Adyen on SMB Payments

In a press release from earlier this month, Adyen and Intuit announced their plans to help small and mid-sized businesses get paid faster and better manage electronic payments. 

Adyen’s embedded payments service will be integrated with Intuit’s business services via QuickBooks Online—which handles over 2.9 million invoices per month in the UK alone. 

Subscribe to our newsletter to get all the biggest payment news delivered straight to your inbox. In case you missed it, here’s a link to last month’s stories.

matt rej
By Matt Rej

Matt has been working in the financial world for over 7 years and after quickly learning the world of payments, for the past 5 years Matt has been exposing the industry for what it truly is. Matt oversees the sales team for MCC, developing new employees and educating enterprise to brick and mortar customers on how they can cut costs within the payments world. Matt has a Bachelor’s Degree in Business Administration from Bryant University and currently resides in South Boston, Massachusetts.

More Articles by Matt »

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