Credit Cards industry is a happening industry with intense competition between different payment processing companies. MasterCard is one such big player in the industry that offers a wide range of credit card options to the merchants. Each card comes with its own package of policies, benefits and rewards. Banks select the cards they want to issue to their customers based on the packages offered.
Each time a bank issues a card to a customer, it incurs a cost to support it, which later is reimbursed in the form of interchange fee. This fee is paid by the merchants based on the cards that are presented and is only known when the card is processed.
Below are different MasterCard Consumer Credit Card rate categories and also details related to business card interchange rate and debit cards rates.
Card your customer uses –>(you can’t control this at all!) |
Core Value |
Enh. Value |
World Card |
World Elite |
What rate do I pay?The below rates are based on your business type and acceptance method – click each one to learn more. |
Best Rates | Better Rates | Bad Rates | Worst Rates |
RETAILIN-PERSON TRANSACTIONS |
1.58% + $0.10 | 1.73% + $0.10 | 1.77% + $0.10 | 2.20% + $0.10 |
SMALL TICKETUNDER $15 |
1.90% + $0.00 | 2.00% + $0.00 | ||
RESTAURANTIN-PERSON RESTAURANT |
1.73% + $0.10 | 2.20% + $0.10 | ||
CARD-NOT-PRESENTE-COMMERCE AND KEYED SALES |
1.89% + $0.10 | 2.04% + $0.10 | 2.05% + $0.10 | 2.50% + $0.10 |
CHARITYCHARITABLE ORGANIZATIONS |
2.00% + $0.10 | |||
SUPERMARKETGROCERY STORES |
1.48% + $0.10 | 1.58% + $0.10 | 1.90% + $0.10 | |
HOTEL/CAR RENTALLODGING/RENTAL MERCHANTS |
1.58% + $0.10 | 1.80% + $0.10 | 2.30% + $0.10 | 2.75% + $0.10 |
STANDARDEXPIRED AUTHORIZATIONS |
2.95% + $0.10 | 3.25% + $0.10 |
What about Debit?
As a user, we do not know usually care what type of debit card a bank issues us. But do you know what different types of debit card are anyway? There are only two – Regulated and Non-Regulated. Banks that have an asset valuation of more than $10 Billion can only issue “regulated” debit cards, whereas banks with assets less than $10 Billion can issue “non-regulated” cards. Example: Bank of America, Citi Bank, Chase, and other big banks issue regulated debit cards.
The thing with MasterCard issued regulated bank debit cards is that no matter the size of the sale and how the card is accepted, the rate per transaction will remain the same. Currently, it is 0.05% and 0.22/transaction.
Card your customer uses –>(you can’t control this at all!) |
Regulated Debit(big-bank card) |
Exempt Debit(credit-union card) |
What rate do I pay?The below rates are based on your business type and acceptance method – click each one to learn more. |
Best Rates | Worst Rates |
RETAILIN-PERSON TRANSACTIONS |
0.05% + $0.22 | 1.05% + $0.15 |
CHARITYREGISTERED SOCIAL SERVICE ORGANIZATIONS |
0.05% + $0.22 | 1.45% + $0.15 |
SMALL TICKETUNDER $15 |
0.05% + $0.22 | 1.55% + $0.04 |
RESTAURANTIN-PERSON RESTAURANT |
0.05% + $0.22 | 1.19% + $0.10 |
CARD-NOT-PRESENTE-COMMERCE AND KEYED SALES |
0.05% + $0.22 | 1.60% + $0.10 |
UTILITYPOWER/GAS/WATER |
0.05% + $0.22 | $0.45 |
EMERGING MARKETSSCHOOLS/GOV’T/INSURANCE |
0.05% + $0.22 | 0.65%
+ $0.15 ($2.00 cap) |
SUPERMARKETGROCERY STORES |
0.05% + $0.22 | 1.05%
+ $0.15 ($0.35 cap) |
HOTEL/CAR RENTALLODGING/RENTAL MERCHANTS |
0.05% + $0.22 | 1.15% + $0.15 |
STANDARDEXPIRED AUTHORIZATIONS |
0.05% + $0.22 | 1.90% + $0.25 |
What's with all the jargon?
Similar to Visa, MasterCard works with the top financial institutions in the US and around the world and therefore have different rates they offer to merchants based on the industry they operate in and the type of business they do. Rates are also dependent on how and what credits cards a merchant accepts. The rates are therefore different from one business category to another. Below are the details of each category – know what you will need to qualify as a merchant, and how your sales might be impacted if you do not qualify.
