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Jason M. Tyra, CPA
Jason M. Tyra, CPA, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 177
Experience:  Principal at Jason M. Tyra, CPA, PLLC
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Is there discount merchant on the credit card interchange

Customer Question

Is there discount for a merchant on the credit card interchange rate for being able to accept chip cards versus swipe cards? How much?
Submitted: 8 months ago.
Category: Finance
Expert:  Jason M. Tyra, CPA replied 8 months ago.

Hi there:

The terms of your merchant services agreement would determine whether you receive a discount for this and how much. In general, less risky transactions (card present vs. online sales, for example) enjoy lower fees. Chip and pin would likely be considered less risky by most merchant services providers, but you will need to check with yours to confirm.

Customer: replied 8 months ago.
I agree that because a chip transaction "would likely" be considered less risky and less risky transactions "enjoy lower fees" so it follows that chip transactions SHOULD receive lower fees. However, I asked about actual practices. That is, are merchants getting a lower rate the way they did with "card present" transactions? If you don't know, please research it or just tell me you don't know.
Expert:  Jason M. Tyra, CPA replied 8 months ago.

I am going to opt out here to give someone else a chance to help you. Perhaps another expert is also a seller of merchant services and can tell you about specific terms available to you.