White Paper: The Ongoing Erosion of Interchange Fee Regulation

24th July 2019
Callum Godwin
Callum Godwin

Are the benefits of IFR about to be undone, and at what cost to merchants?

Over the years, interchange has been an uphill struggle for many merchants – battling weak regulation and replacement fees – and even today, despite regulation, here at CMSPI we still spend lots of our time working on interchange optimisation projects for our clients. Many merchants are still charged on less transparent charging structures which lack visibility of their fee breakdowns. In some cases, acquirers are failing to pass on savings, and without benchmarking data and negotiating power, merchants are still being overcharged for many services.

This white paper will highlight some of the issues with the IFR, what lessons can be learned from other jurisdictions, and what merchants should be doing to halt this erosion of benefits and create a fair payments ecosystem.

Topics Covered Include:

A Brief History

How did we get here and what's the story so far?

A Global Perspective

We take a look at regulation, exemptions, and methodologies for some of the largest card markets in the world.

Lessons from the U.S.

More than 50% of intended regulation savings for U.S. merchants have now been eroded.

Issues with Current Regulation

Current issues with regulation and a look at what should happen going forward.

Please enter your details below to receive your copy of
The Ongoing Erosion of Interchange Fee Regulation

(Please note, if you don’t receive the white paper within 5 minutes, it may be stuck in your junk/spam filter. If you have any further issues please email Sarah Midgley at smidgley@cmspi.com)

You Might Also Be Interested In These...

Breaking News: Sainsbury’s Settle with Mastercard in Battle Over Historical Interchange Fees

Sainsbury’s settle with Mastercard in battle over historical interchange fees

Read More >
Despite Regulation, Global Card Fees Continue to Grow and Threaten Merchants (Insights Magazine, July 2021)

CMSPI analysis suggests that overall fee changes scheduled for 2021 and 2022 could generate over $1.1bn in additional annual costs for U.S. merchants.

Read More >
CMSPI Consultation Response – Reserve Bank of Australia: Review of Retail Payments

In May 2021, the Reserve Bank of Australia published a consultation paper on its Review of Retail Payments Regulation.

Read More >
White Paper: The Merchant Battle Worth €68bn – Understanding Interchange Reclaims

In this paper, we outline how merchants can make their claims successful, substantiated, and truly maximised.

Read More >
Interested in how these issues affect your business?