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.

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The Ongoing Erosion of Interchange Fee Regulation

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Interested in how these issues affect your business?