The short answer is … Yes, if you’re a Leap Payment’s client your costs are about to decline dramatically for debit card transactions starting October 1. If you’re not a Leap Payments client your costs will likely stay the same, but your processor’s revenue will be increasing dramatically. We believe that our clients deserve to receive 100% of all cost reductions without even asking.
First, some quick background for first time readers: The Federal reserve board now regulates the costs that Visa and MasterCard as well as the debit networks can charge for debit card (check card) transactions. On October 1, the Fed has set maximum costs to 0.05% and $0.21 per debit transaction. To see more details here’s a quick link to the Fed’s website
But the story does not end there. Your credit card processor has the ability to either pass along these cost reductions to their clients, or continue to charge their clients the same fees and keep the savings for themselves.
We have credible information from the major processors that they are not reducing their client’s debit card rates, so even though their costs are reducing they are trying to hide this fact from their clients, so they can keep the money for themselves. We also hear that for new accounts some processors are offering a lower bundled cost for qualified credit and debit cards, but not passing along the full benefit of the new lower debit card costs onto you the business owner.
Why is Leap Payments different? We offer true interchange plus pricing, which means when the interchange costs drop, our client’s cost drop as well. 100% of cost savings are automatically and immediately passed along to our clients. Other processors do not share our philosophy or ethics and might pass along some of the savings, or worse keep all the cost reductions to themselves.
Starting October 1 debit card cost savings are significant! The cost will reduce from 0.95% to 0.05%, so for a business processing $10,000 per month in debit cards, you’ll immediately save $90 per month or $1,080 per year if you’re a Leap Payments client. Only if you have a true interchange pass through account will you experience the full savings automatically.
We appreciate your business and will continue to deliver the lowest cost accounts available with our knock your socks off service.