by Matt Rej
April is right around the corner, which is when major interchange updates from card networks like Visa and Mastercard typically roll out.
Merchants are conditioned to expect interchange adjustments this time of year. And processors know this, so they use this conditioning to THEIR advantage.
We see so many credit card processors time their rate increases to align with interchange adjustments. Because they’re hoping you assume any cost increase is caused by the card networks.
But here’s what you need to understand:
- Two separate things are happening simultaneously.
- Interchange adjustments at the network level are independent of processor increases.
- Payment processors are intentionally blurring the lines to make things confusing for you.
You need to keep an ultra-close eye on your statements and notices from your processor this time of year. There’s a good chance they’re trying to sneak an increase on you while hiding behind the networks as an excuse.
Interchange Updates Have Nothing to do With Your Processor’s Rates
Interchange rates are set by the card networks. Each transaction has a corresponding rate based on factors like card type, transaction environment, MCC code, and other criteria.
Visa and Mastercard typically adjust interchange rates, assessment fees, and network-level programs twice per year: April and October (with other small changes periodically).
- Everything related to interchange is non-negotiable.
- These are pass-through fees, and your processor doesn’t profit from them.
- Your processor’s cost to process transactions doesn’t change when network rates increase.
For example, Visa’s Digital Commerce Service Fee is doubling from 0.0075% to 0.015% on 4/1/26. This has zero impact on your processor and their costs to process CNP transactions.
They pay Visa directly for this fee, and they’re supposed to pass it through to you at cost. Whether it costs you $0.10 or $10k, it’s net zero for your processor.
This is important to understand because if your processor is increasing your rates in April or October “due to card network changes” it’s deceptive and inaccurate.
Look, processors are free to raise rates whenever they want to, and your contract likely allows them to do so penalty-free. I don’t like it. But it is what it is.
The problem with this is when they cite a reason for the increase that is a flat-out lie.
Rate Increases Hidden in a Network Update Notice
Processor-imposed increases aren’t always transparent. Here’s an example I pulled directly from a notice that was sent to one of our clients:
Important message regarding your fees: Due to card brand changes affecting interchange, assessment rates and industry classifications, you may see changes that impact your cost of card acceptance. Refer to your merchant statement for additional details. To this end and pursuant to your merchant agreement, April 2026, you may see new fees and/or changes to some of your rates and fees including your discount rates, assessments, per item fees and auth fees.
This processor is increasing their rates in April. And the average merchant receiving this notice doesn’t even realize it.
They lead with “due to card brand changes” to immediately shift focus toward the networks while never actually specifying an amount. The rest of the notice is filled with interchange-level changes, which further obscures what’s actually happening.
But if you look closely, you’ll see that the notice clearly mentions:
- Interchange: Non-negotiable from the networks
- Assessment Rates: Non-negotiable from the networks
- Discount Rates: Negotiable, processor-imposed
- Per Item Fees: Negotiable, processor-imposed
- Auth Fees: Negotiable, processor-imposed
Three of the five fees listed are coming from your processor, which has absolutely nothing to do with the interchange-level changes from the card networks.
Why Processors Time Their Increases This Way
Processor increases that go into effect in April and October are not a coincidence.
This is a strategic decision made by your processor that’s designed to increase their profits while getting minimal pushback from merchants.
Here’s why:
- Businesses are already bracing for changes that can increase their merchant fees in April.
- Most merchants don’t track every line item on monthly statements.
- So if your total cost to process credit cards increases, your processor hopes you’ll just assume it’s due to the card network changes (and they’re usually right).
It’s a double-whammy hit on merchants.
You’re absorbing a legitimate network increase AND a processor increase simultaneously. Since everything happens at once, it’s nearly impossible to determine where the rate increase came from unless you know what to look for.
That’s exactly what they’re banking on.
What to Do If You Get Rate Increase Notices Timed With Card Network Updates
First and foremost, you need to read every notice from your processor carefully. Don’t assume everything is network-driven, despite any deceptive language to steer you in that direction.
Look for these specific types of fees in any notice you receive:
- Discount rates
- Per item fees
- Authorization fees
If any of these are mentioned, that’s your processor increasing their margin. These rates have nothing to do with Visa, Mastercard, Amex, and Discover or their corresponding interchange rates and assessments.
Additionally, any vague mention of rate “changes” and/or “new fees” can also be a sign that your processor is increasing rates, and they’re intentionally using broad language to put everything (including interchange) into one bucket.
After April, pull your statement and compare it against what you were paying in March.
Don’t just look at the total cost or effective rate. Go line-by-line and compare each fee with the previous month to spot processor-imposed increases.
Processor fees are all negotiable, so you don’t just have to sit back quietly and accept those changes.
If you’re struggling to tell the difference between what’s a legitimate network increase and where your processor might be taking advantage of you, contact our team here at MCC for a free audit. We’ll highlight those changes for you and negotiate with your processor directly to get your rates back down, likely lower than what you were paying before the increase went into effect.