Mastercard Interchange Rates (2024)

Last Updated: 10/12/2024

Mastercard is one of the four major credit card networks. Each Mastercard transaction processed by a merchant is assessed with specific interchange fees. The rate is based on a wide range of factors.

The exact interchange rate paid by the merchant is established by the acquiring bank. Mastercard does not have any involvement in the pricing policy or agreement between merchants and acquirers. 

In short, merchants pay a markup on top of the interchange rates imposed by Mastercard. You can check out our complete guide to interchange fees and rates for more information about how this works. 

If you review the full Mastercard interchange program, you’ll find hundreds of different rates and fees. This can be quite difficult to navigate through. I created this guide to highlight some of the most common Mastercard interchange rates as a quick resource for merchants to reference. 

Mastercard Interchange Updates (Effective October 2024)

Mastercard has rolled out several key changes to its interchange program, effective October 18, 2024. Here’s a quick summary of what you need to know:

• New Transaction Link ID (TLID) to carry a Mastercard-generated identifier used identically for authorization and clearing messages
• New Merchant Payment Gateway identifier requirement for ecommerce authorization messages will by mandatory by May 2025 
• Mastercard revised its funding requirements for specific MCC codes in the gaming and gambling space, with new transaction code mandates
• There’s a new Merchant Advice Code (MAC) value 43 to identify multi-use virtual card numbers in account inquiries
• Mastercard is introducing a new Transaction Type Identifier (TTI) for B2B transactions: P11
• The 10-day response window for acquirers to withdraw for arbitration case filings has been eliminated

Mastercard Interchange Updates (Effective March 2024)

Mastercard is implementing the following fee changes, effective March 1, 2024:

• $3.50 fee per dispute refund request for Tier 1 MCC codes
• $20.00 fee per dispute refund request for Tier 2 MCC codes
• $0.25 fee per collaboration adjustment
• $1.00 fee per Incoming Refund Request (received by processor and sent to merchant)
• $7.50 fee per Mastercard Refund Request (for anything other than rejected credit to the cardholder, including Mastercard Response Codes A, B, and C, as Refund Request Rsp MC-DMS)

Mastercard is also increasing its Network Case Ruling to $575 (previously $400). This is charge is assessed per ingoing/outgoing filed arbitration lost ruling, incoming/outgoing file compliance lost ruling, incoming/outgoing filed arbitration withdrawal, and/or incoming/outgoing filed compliance withdrawal.

Additionally, Mastercard is increasing its Network Case Filing Withdrawal fee to $325 (previously $150). This fee is assessed on each incoming/outgoing filed arbitration withdrawal and/or incoming outgoing filed compliance withdrawal.

Mastercard Interchange Updates (Effective January 2024)

Effective January 2024, Mastercard is increasing its Excessive Authorization Attempts Transaction Processing Excellence Fee. The new fee is $0.30.

This fee gets charged for excessive account testing from a single account number and the same card accepter within a 24-hour period. It will be assessed weekly for every authorization after the issuer has ten previous decline attempts with the same account number.

NACHA may also assess fines ranging from $1,000 to $500,000 per month that could be passed to the merchant. Merchants who are unable to provide proof that they have obtained authorization to debit the cardholder’s account could be subject to these fines (per NACHA Rules–subsections 2.31. and 3.3.2.7).

New Mastercard Network Fees (Effective October 2023)

Mastercard announced the following new interchange rates and fees that will go into effect on October 8, 2023:

• Authorization Optimizer Insufficient Fund – $0.02
• Pre Authorization Card Present Fee – 0.0075% ($0.01 minimum)
• Pre Authorization Card Not Present Fee – 0.0125% ($0.01 minimum)

The new pre authorization fees will not apply to automated fuel dispensers (MCC code 5542), debit, transit aggregated or transit debit recovery transactions.

New Mastercard Interchange Rates (Effective April 12, 2023)

Like other card networks, Mastercard interchange is a complex subject. The interchange rates are determined based on factors like card type, transaction environment, merchant category code (MCC), and more. The following Mastercard interchange rates are updated for 4/14/2023:

Mastercard Airline Interchange Rates

• High Value Airline – 2.55% + $0.10
• Consumer Credit World Elite Airline – 2.55% + $0.10

Mastercard Convenience Purchase Base Interchange Rates

• Convenience – 1.65% + $0.04
• Enhanced Convenience – 1.80% + $0.04
• World US Convenience – 1.90% + $0.04
• High Value Convenience – 2.30% + $0.04
• World Elite Convenience – 2.30% + $0.04

Mastercard Merchant UCAF Interchange Rates

• Consumer Credit Merchant UCAF – 1.95% + $0.10
• Enhanced Merchant UCAF – 2.10% + $0.10
• World Merchant UCAF – 2.20% + $0.10
• High Value Merchant UCAF – 2.60% + $0.10
• World Elite Merchant UCAF – 2.60% + $0.10

Mastercard Full UCAF Interchange Rates

• Consumer Credit Full UCAF – 1.95% + $0.10
• Enhanced Full UCAF – 2.10% + $0.10
• World Full UCAF – 2.20% + $0.10
• High Value Full UCAF – 2.60% + $0.10
• World Elite Full UCAF – 2.60% + $0.10

Mastercard Keyed Entry Interchange Rates

• Keyed Entry – 1.95% + $0.10
• Enhanced Keyed Entry – 2.10% + $0.10
• World US Keyed Entry – 2.20% + $0.10
• High Value Keyed Entry – 2.60% + $0.10
• World Elite Keyed Entry – 2.60% + $0.10

Mastercard Lodging, Auto Rental, and Cruise Interchange Rates

• Lodging/Auto/Cruise Credit – 1.65% + $0.10
• Lodging/Auto/Cruise Enhanced – 1.75% + $0.10

Mastercard Merit I Interchange Rates

• Merit 1 – 1.95% + $0.10
• Merit 1 Enhanced – 2.10% + $0.10
• Merit 1 World US – 2.20% + $0.10
• Merit 1 High Value – 2.60% + $0.10
• Merit 1 World Elite – 2.60% + $0.10
• Merit 1 Core Insurance – 1.43% + $0.05
• Merit 1 Enhanced Insurance – 1.43% + $0.05
• Merit 1 World Insurance – 1.43% + $0.05
• Merit 1 High Value Insurance – 2.25% + $0.10
• Merit 1 Insurance World Elite – 2.25% + $0.10

Mastercard Merit I Real Estate Interchange Rates

• Merit 1 Core Real Estate – 1.43%
• Merit 1 Enhanced Real Estate – 1.43%
• Merit 1 World Real Estate – 1.43%
• Merit 1 World High Value Real Estate – 2.20% + $0.10
• Merit 1 World Elite Insurance – 2.20% + $0.10
• Merit 1 Real Estate Debit – 0.80% + $0.25 (max $5.00)
• Merit 1 Real Estate Prepaid – 0.80% + $0.25 (max $5.00

Mastercard Merit I Day Care Interchange Rates

• Merit 1 Core Day Care – 1.60% + $0.10
• Merit 1 Day Care Enhanced – 1.60% + $0.10
• Merit 1 Day Care World – 1.60% + $0.10

Mastercard Merit III Interchange Rates

• Merit 3 Core – 1.65% + $0.10
• Merit 3 Enhanced Base – 1.80% + $0.10
• Merit 3 World Credit – 1.90% + $0.10
• Merit 3 High Value – 2.30% + $0.10
• Merit 3 World Elite – 2.30% + $0.10
• Merit 3 Prepaid – 1.15% + $0.10

Mastercard Passenger Transport Interchange Rates

• Passenger Transport Consumer Credit Enhanced – 1.75% + $0.10
• Passenger Transport Consumer Credit Core – 1.65% + $0.10

Mastercard Restaurant Interchange Rates

• World US Restaurant – 1.85% + $0.10
• High Value Restaurant – 2.00% + $0.10
• World Elite Restaurant – 2.00% + $0.10

Mastercard Standard Interchange Rates

• Core Standard – 3.15% + $0.10
• Enhanced Standard – 3.15% + $0.10
• World US Standard – 3.15% + $0.10
• High Value Standard – 3.15% + $0.10
• World Elite Standard – 3.15% + $0.10

Mastercard Supermarket Interchange Rates

• Supermarket Core Base – 1.45% + $0.10
• Supermarket Enhanced Base – 1.60% + $0.10
• Supermarket World – 1.70% + $0.10
• Supermarket High Value Base – 2.10% + $0.10
• Supermarket World Elite Base – 2.10% + $0.10

Mastercard Travel and Entertainment Interchange Rates

• T&E World – 2.25% + $0.10
• T&E High Value 2.55% + $0.10
• T&E World Elite – 2.55% + $0.10
• T&E High Value Large Ticket – 2.55%
• T&E Consumer World Elite Large Ticket – 2.55%

Mastercard Utilities Interchange Rates

• Utilities Credit – $0.75
• Utilities Enhanced – $0.75
• Utilities World Credit – $0.75

Mastercard Small Ticket Interchange Rates

• Small Ticket Card Present Core – 1.65% + $0.02
• Small Ticket Card Present World – 1.90% + $0.02
• Small Ticket Card Present World High Value – 2.30% + $0.02
• Small Ticket Card Present Enhanced – 1.80% + $0.02
• Small Ticket Card Present World Elite – 2.30% + $0.02
• Small Ticket CNP Core – 1.95% + $0.02
• Small Ticket CNP World – 2.20% + $0.02
• Small Ticket CNP World High Value – 2.60% + $0.02
• Small Ticket CNP Enhanced – 2.10% + $0.02
• Small Ticket CNP World Elite – 2.60% + + $0.02

Mastercard Consumer Credit Refund Interchange Rates

• Consumer Credit Refund Group 1 – 2.30%
• Consumer Credit Refund Group 2 – 1.75%
• Consumer Credit Refund Group 3 – 1.75%
• Consumer Credit Refund Group 4 – 1.75%
• Consumer Credit Refund Group 5 – 1.75%

New Mastercard Fee Updates (Effective March 13, 2023)

Effective 3/13/2023, Mastercard is introducing a new digital enablement fee in Canada. The 0.02% fee will be assessed on cardholder not present transactions from US acquired authorizations on consumer credit, commercial, and signature debit cards.

There is a $0.02 minimum and $0.20 maximum on per qualifying transaction on this new digital enablement fee.

Also effective March 13, 2023, Mastercard is updating the cost for AVS, CVC2, and Account Inquiries for fraud mitigation in Canada. The following Mastercard fees are all dropping to $0.00 as of 3/13/2023:

• MC Address Verification CNP
• MC CVC 2 Auth Fee
• MC Acct Inquiry Status**
• MC 3DS2 Identity Check
• 3DS2 Maximum Pricing Cap
• MC Digital Commerce Development

**Note: The MC Acct Inquiry Status change only applies to card not present transactions. The current rate of $0.025 will still apply for card present activity. 

Mastercard Interchange Fee Updates (Effective January 2023)

Mastercard is increasing its excessive authorization integrity fee in the US to $0.15 (up from $0.10). This rate will continue to increase in the coming years as well, to $0.30 on January 1, 2024 and $0.50 on January 1, 2025. 

As of January 1, 2023, Mastercard is also implementing a new Merchant Advice Code (MAC) for LAC (Latin America and Caribbean) regions. The new rate is $0.50, which is up from $0.25 that was implemented in January 2022 for the LAC region.

Effective January 20, 2023, Mastercard will begin using Sunday as a processing day in Canada.

Mastercard Will Start Phasing Out Magnetic Strip Cards in 2024

Mastercard recently announced that it will be the first major payment network to phase out magnetic strip cards.

Magnetic strip card technology was initially introduced in the 1960s. But modern technology, like EMV chip cards, has surpassed magnetic strips in terms of functionality and security. EMV chips are now used to facilitate 86% of in-person card transactions worldwide.

As a result, Mastercard will start to eliminate magnetic strips from new cards issued as early as 2024. Banks in the US will no longer be required to issue magnetic stripe cards in 2027, and Mastercard plans to have no new cards with magnetic strips by 2029.

The phasing out process will occur in stages, likely starting in Europe. We’ll release new updates as we get closer to the implementation of Mastercard’s new cards in the coming years.

Mastercard Interchange Fee & Updates Timeline

Here’s a quick summary of Mastercard’s updates from 2022:

November Updates

• Mastercard is modifying its Excessive Authorization Attempts TPE program in Canada, one month behind the changes made in the US.
• As of November 1, the threshold of declined attempts for this program in Canada is being reduced from 20 to 10.
• Effective November 7, the excessive authorization integrity is increasing to $0.50 in Canada (up from the current rate of $0.10).

October Updates

• Effective October 1, Mastercard is reducing the threshold of declined attempts for the Excessive Authorization Attempts TPE Program in the US. The rate is being reduced to $0.10, and will increase to $0.15 on January 1, 2023. 
• Effective October 13, Sundays will become a global processing day for Mastercard (except in Canada). Once the change goes into effect, Sunday will now count towards the days transactions must be settled to avoid interchange downgrades.

May Updates

• Mastercard is introducing a new integrity fee. It’s a decline reason code fee of $0.03.The authorization fee is billed for Mastercard decline reason codes 79, 82, and 83, and the merchant advice code is 01 or 03.

April Updates

• New Mastercard Reporting and Infrastructure Fee – $0.0002
• New Mastercard Digital Enablement Fee – 0.02% (min $0.02, max $0.20)
• Decline Reason Code Service Fee – $0.02%

Due to the new digital enablement fee expansion for CNP transactions, the following rates are being dropped to $0:

• MC AVS Card Not Present Fee
• Mastercard CVC2 Fee
• MC ASI Interregional Fee
• MC Id Check 3DS2 Fee
• MC Digital Enablement/CNP Fee

What is the Mastercard Interchange Rate?

As you can see from the examples, there’s no single fee to answer this question. Lots of factors play a role in how these fees are determined. Mastercard interchange rates are impacted by the card type, merchant category, purchase price, processing volume, and more.

Some transactions have higher interchange fees. For example, a business debit card and consumer debit card from a Mastercard card issuer will likely have two different rates.

In terms of the total transaction cost for merchants, things like network brand usage fee, the customer’s credit card bank, acquirer license fee, and more.

Final Thoughts

Visa and Mastercard are two of the most popular credit card brands. That’s why it’s so important for merchants accepting Mastercard cards to understand the interchange fees charged for each transaction.

This guide just scratches the surface in terms of Mastercard interchange rates. But it covers the most common fees that apply to the majority of merchants. You can use this resource to compare the Mastercard interchange fees against the actual fees you’re being charged by your payment processor. 

No matter the situation, you’re always going to pay interchange fees on purchase transactions conducted with a Mastercard.

While the Mastercard interchange rates are non-negotiable, you can lower your credit card processing fees by negotiating the rates with your processor. Contact us here at Merchant Cost Consulting to find out how much you can save. We can negotiate those rates on your behalf.