Merchant's Guide to Card-Not-Present Interchange Fees

According to The Merchant's Guide principal, Mike Shatz, "The publication of rates by the Associations was initially regarded as a blessing by merchants. These merchants soon learned, however, that in order to optimize their credit card costs, they had to master a very large rule set consisting of hundreds of Interchange rates and qualifiers." Shatz goes on to say, "While the release of the rates represented a bona fide cost savings opportunity, the complexity discouraged many merchants from pursuing Interchange optimization altogether."

Understanding Interchange was created to consolidate this complex rate set into a manageable reference that direct merchants can use to manage their card operations. In particular, the guide presents:

• An overview of the different credit card systems and the fundamental concepts behind merchant discounts;
• Interchange rates commonly applicable to direct merchants;
• Mathematical relationships that make it possible for merchants to understand the impact of Interchange on product pricing and other marketing related decisions; and
• The operational requirements for obtaining the best possible Interchange rates

Understanding Interchange includes dozens of computational examples and a companion spreadsheet to help merchants become proficient with these concepts.

Mr. Shatz firmly believes that most merchants are leaving money on the table, especially those whose business models include recurring billing and micropayments. "The Associations frequently create reduced-cost Interchange programs," says Shatz. "In many cases, merchants simply don't know how to identify and apply these opportunities." Shatz continues, "Knowing about the right programs and qualifications can often save merchants thousands of dollars in annual Interchange fees."

Understanding Interchange is intended for merchants of all sizes. The primer also serves as a useful training resource for companies operating within the credit card industry itself. The 70-page guide is available exclusively through The Merchant's Guide, LLC. The softbound version retails for US$179.00. The guide is also licensed electronically at a discount for quantities of six or more. Interested buyers can purchase directly from TMG's website: http://www.TheMerchantsGuide.com