Introduction

Changes in your interchange rates can raise concerns for associations and nonprofits but understanding why and when credit card processing rates adjust throughout the calendar year is important when planning your strategic roadmap.

Key Takeaways

• Interchange rates are transaction fees paid by associations and nonprofits for accepting credit card payments.
• These rates cover processing costs, risk management, and benefits for organizations and supporters.
• Card type, transaction method, and industry classification influence interchange rates.
• Compliance with regulations and data security standards impacts interchange rates.
• Operational costs, risk management, and rewards programs drive interchange rate adjustments.
• Interchange rate increases fund enhanced security measures and new payments technology.
• Increased fees contribute to combating fraud and protecting personal identifying information (PII), which is especially critical to associations, nonprofits, and higher education.
• Card brands typically increase the interchange rate in April and October.

Conclusion

By embracing advancements in enhanced security protocols and innovative payment solutions, associations and nonprofits can better mitigate the risk of fraud, stay compliant with new regulations, and provide lower cost alternatives to customers.