Payment Processing Industry News — October 2024

October was a busy month in the payments space. To help keep you informed, I’ve compiled the biggest stories and summarized them below—so you always know what’s trending. 

New Interchange Updates Effective October 18, 2024

The card networks typically make interchange adjustments twice annually, around April and October. This year was no different, as we saw several updates this month, ranging from new categories to fee adjustments to program changes and more. 

I’ll summarize the key highlights for you below, but you can refer to our specific card network update pages for a more in-depth explanation.

Visa

• Visa introduced six new Small Merchant Supermarket categories.
• They also created three new categories for the Commercial Choice Select program.
• Merchants with fuel and fleet MCC codes will be subject to some major changes from Visa, including an increased AFD qualification limit, two new commercial fuel programs, new fuel codes, and more.
• Visa rolled out two new decline codes for cross-border transactions, including one that’s subject to a $5 return fee.

Check out our Visa interchange rates page for more information on these updates and the new fees for the programs.  

Mastercard

• New TLID for authorization and clearing messages.
• New requirement for ecommerce authorization messages (mandatory by May 2025).
• Revised funding requirements and transaction codes mandates for merchants in the gambling and gaming spaces.
• New Mastercard MAC code for multi-use virtual cards.
• Mastercard has eliminated its ten-day response window for acquiring banks to withdraw from arbitration case filings.
• New TTI for B2B transactions.

See more Mastercard updates and rates here. 

American Express

Merchants on the Amex OptBlue program and third-party processors now have access to a new authorization feature. American Express is making it possible to request an increase or decrease to the authorization amount before a transaction gets submitted. 

This includes estimated authorizations, incremental authorizations, and partial reversals.

Refer to our Amex interchange rates and processing fees for more information. 

Payment Processor Rate Increases (October 2024)

In addition to the changes made at the card network level, we also saw several payment processors add new fees and increase rates this month. 

PatientNow

Effective October 1, 2024, PatientNow hiked its processing rates by 0.05% per transaction. This is the second PatientNow increase of the year, and you can read more about both of them here. 

PNC Merchant Services

This month, PNC Merchant Services announced a rate hike that goes into effect on November 1, 2024. PNC’s discount rate is increasing by 0.20% per transaction. Read more here.

Fiserv

Fiserv notified merchants about several new fees and changes this month, including:

• New Interlink fees
• New STAR PIN and ACCEL PIN debit network fees
• An update on Visa’s new interchange categories and applicable fees
• A $0.05 increase in Visa’s ANI Fee effective 11/1/24

For more details and exact fees, check out our full history of Fiserv’s rate changes and updates. 

Lightspeed

Our clients using Lightspeed received a notice in October stating that Lightspeed will begin charging $400 per month for merchants using non-Lightspeed payment solutions. 

This comes on the heels of a Lightspeed rate increase that just went into effect on August 30, 2024.Read more about both of these Lightspeed rates here. 

Global Payments

Global Payments notified its customers about rate changes at the interchange level that went into effect in October. They also updated their dispute resolution process for Visa and notified merchants of an upcoming annual fee that will appear on December 2024 statements. 

Strangely, Global did not specify the amount of the annual fee. So I have a feeling the fee won’t be consistently charged across the board to all merchants.

Keep an eye on our Global Payments rate page for more information on this fee, as we’ll update it as soon as we start seeing it appear on our client’s statements. 

Wells Fargo Merchant Services

Businesses using Wells Fargo Merchant Services will see an extra 0.01% fee on debit transactions through the Interlink network originated by Visa business solutions as of 10/19/24.

Starting on 11/1/24, Wells Fargo will begin passing through Visa’s ANI Fee at the new rate of $0.10. See all of Wells Fargo Merchant Services rates here. 

Walmart Offers $500 Discount on Clover Products Plus $100 Gift Card to its Business Clients

Fiserv is partnering with Walmart to push its Clover products on Walmart’s small business, mid-sized business, and nonprofit clients. As part of the promotion, eligible businesses can get a $500 discount on Clover products and a $100 Walmart gift card. 

This promotion runs from now through January 2025. 

Nuvei Partners with BigCommerce For Customized Ecommerce Payments

Canadian fintech company Nuvei is partnering with BigCommerce to provide customizable payments solutions for ecommerce websites. 

The partnership will help provide omnichannel payment processing solutions for businesses operating both online and in-person through a single provider. This will come with a suite of features, 3DS2 technology, multicurrency processing, embedded checkouts, preauthorizations, refund management, and more. 

Worldpay Targets Gaming Payments With the Help of Aeropay

Worldpay is teaming up with a Chicago-based startup Aeropay in an effort to tap into gaming payments. More specifically, they’re working to provide A2A (account-to-account) payments via ACH transfers and instant withdrawals using the Clearing House’s RTP network. 

This gaming segment extends to fantasy sports services and online betting, which already accounts for a significant portion of Aeropay’s revenue. 

CFPB Issues Final Ruling on Open Banking to Include Payment Apps

The Consumer Financial Protection Bureau has issued a final ruling on its data control rule, which modifies the proposal that was originally presented in 2023. 

This new rule requires financial institutions, including credit card issuers and payment apps to transfer any personal financial data to other providers at no charge at the consumer’s request. 

Originally, payment apps were excluded from the proposal, but that’s no longer the case However, banks and credit unions with fewer than $850 million in assets will be exempt from the rule. 

Visa is Piloting a New Commercial Solutions Hub

Visa just launched a new commercial payments system, called the Visa Commercial Solutions Hub (VCS Hub). It’s an integrated platform that aims to provide a personalized and consistent experience for users with all payment-related tasks through a single sign-on. 

Financial institutions and businesses involved in the pilot program will also have access to complimentary integrations and other fintech services for managing commercial payments.

Toast Announces New Products, Including a Branded Mobile App and SMS Marketing

Toast just announced a new branded mobile app feature for merchants, which allows restaurants to create their own mobile app for iOS and Android.

This is part of Toast’s Digital Storefront Suite and aims to establish a direct connection between businesses and their guests—providing features like built-in customer loyalty, order suggestions, online ordering, and more.

Restaurants will also have access to SMS marketing features directly through Toast, allowing them to send time-sensitive text-based promotions to their guests. 

Square Launches a New Ordering Platform

Square just announced a major lift to its infrastructure, specifically geared towards ordering options for restaurants and bars. 

This new ordering platform gives merchants access to features like opening a bar tab and pre-authorizations for ordering ahead. 

Visa is Introducing a New Tokenized Asset Platform

Visa just announced a new product in an October 3rd press release. The Visa Tokenized Asset Platform (VTAP) uses blockchain technology and is available through the Visa Developer Program for financial institutions that want to experiment with fiat-backed tokens. 

This technology can be used for things like smart contracts and other use cases for banks to integrate blockchain throughout their operations. 

Fiserv’s Application For a Special Banking Charter in Georgia Gets Approved

Fiserv has been granted conditional approval for its special banking charter in Georgia, which will allow them to acquire credit and debit payments directly for merchants. This means that Fiserv will no longer need to partner with banks to process payments—giving them direct access to card networks.

The company plans to start using its new charter by 2025. 

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