No matter your business, you could feel the effect of the changes in the charges recently announced by MasterCard to their pricing and charges to the merchant accounts. Even a high-risk business like an electronic cigarette merchant account could see a rise in the price they pay for services.
The charges are going to affect the amount of money the business is going to pay when the card transactions occur. The main issue, that this is going to affect is the work involved in the correct pricing of goods and services, in line with the new pricing structure, from the debit and credit card providers.
Another area of change is the wording from ‘card not present’ to ‘cardholder not present’ this allows for the increase in consumers who are using different techniques to pay for goods and services, which don’t even require them to carry plastic debit or credit cards. The facility uses their mobile technology, normally their phone, which can safely pay for goods and services using contactless payment technology.
Understanding where the changes are going to affect your business is more difficult than you might imagine. Being aware of the service provided to you, it is important to study the publication that highlights the changes to the business practice. This will ensure that you are fully aware of any new charges or increases in the money you already pay and the full effects this will have on your business, enabling you to increase business costs accordingly.
The digital enablement fees are just one example of the changes to the merchant accounts coming into force in the New Year. It is an example of the power that credit and debit card providers have over the industry, because of the buying power they offer to your customers.
Therefore, whilst these changes are going to affect business profits there is little a business can do to protect itself from the increased fees.
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