To help you keep pace with the latest news in the payments space, I’ve compiled a monthly roundup of the latest headlines. Here’s what’s happening this month:
Processor Rate Increases
Three major processors announced rate hikes in November:
- QuickBooks is increasing its rate cap on ACH transactions from $5 to $10, effective 12/2/24. This applies to select accounts on a custom pricing plan. Read more.
- Effective 11/1/24, TSYS increased its Qualified Discount Rate, Non-Qualified Surcharge Fee, Transaction Network Access Fee, and Settlement Funding Fee. These changes vary by account, and the increases range from 0.35% to 0.65%. Read more.
- North American Bancard increased processing rates by 0.25% per transaction for daily discount merchants and select accounts on a tiered pricing structure. This went into effect on 11/1/24. Read more.
Card Network and Interchange Updates
The card networks have announced some significant changes at the interchange level, which go into effect in January 2025 and April 2025.
We’ll have the new rates published and updated on our respective card network pages next month so you’ll know exactly what to expect for the new year, but here’s a quick preview of what’s being changed:
- Visa is introducing a new Commercial Enhanced Data Program (CEDP) in the US that has some rate reductions for participating merchants submitting Level 3 card data, but there’s also a 0.05% per transaction participation fee.
- Visa is increasing some specific network fees and increasing authorization fees for US merchants.
- Mastercard is increasing excessive authorization fees.
- Interac debit network rates are increasing.
Stay tuned as we continue to update our resources with the latest fees and rates.
EBT Chip Cards Will Be Issued in California in 2025
Fiserv sent a notice to merchants reminding them that new EBT chip cards will be issued in California starting in 2025.
To prepare for this change, merchants should make sure their software and POS terminal are equipped with the latest technology to process chip-enabled EBT transactions.
Elavon Launches New Payment Gateway
Elavon just launched a cloud-based gateway designed to enhance the payment experience for consumers and merchants alike. As an omnichannel gateway powered by cloud technology, merchants can use this to accept payments online, in-store, and through mobile devices from a single platform.
The gateway is also equipped with robust technology, like real-time fraud scoring with AI and 3D secure.
Read More: Elavon Review | Elavon Rates
Shift4 Rolls Out Pay With Crypto Feature
Shift4 just announced the release of its Pay with Crypto feature, which allows merchants worldwide to accept cryptocurrency payments with the click of a button—for both in-store and ecommerce transactions.
The solution supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, Solana, USDC, and more. All crypto payments will automatically be converted to US dollars and then settled to the merchant.
Read More: Shift4 Review | Shift4 Rate Increases, Fees, and Updates
Fiserv Releases its SMB Index
Fiserv published its SMB Index from last month. Here are some key takeaways from this report:
- Sales growth up 3.7% MoM
- YoY sales growth up 7.1%
- Total index value up 6 points from previous month
- The food and beverage subsector currently has the highest sales index
Read the full report here.
Fiserv Rolls Out New Clover Solutions
Fiserv is bringing new industry-specific solutions to its Clover products. Here’s a summary of the three key verticals that Fiserv is targeting with these updates:
- Restaurants — Features to manage both front-of-house and back-of-house with real-time kitchen reporting.
- Service Businesses — Access to appointment booking and employee management features.
- Retail — Omnichannel integrations, custom websites, and digital storefronts with the ability for customers to purchase something online and pick up in-store.
Upgrades include new hardware, integrated capabilities for things like customer loyalty, gift cards, and payroll, cash discounting, same-day transfers, and more.
Celero Commerce Acquired Precision Payments
Celero Commerce just announced its acquisition of Precision Payments. This acquisition will bring Celero’s processing volume to $28 billion per year.
Visa is Planning 1,400 Layoffs by End of Year
Reports indicate that Visa is planning to lay off 1,400 employees by the end of 2024. This includes roughly 1,000 tech positions. Beyond the technology positions, the remaining layoffs will be focused on merchant sales and global digital partnerships.
With the cuts, Visa is trying to streamline its international business.
Global Payments Sells AdvancedMD for $1.13 Billion
Global Payments announced its agreement to sell AdvancedMD, a cloud-based software for medical practices. The $1.13 billion sale to Francisco Partners Management is expected to be finalized by the end of the year.
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