Correction: #InterchangePassThrough is Trending!

by Mercator Advisory Group 0

Correction: Yesterday, PaymentsJournal mistakenly characterized an announcement from as the only public statement from a merchant acquirer indicating a pass-through of all interchange savings resulting from the Durbin amendment. Based on new findings, other companies including Heartland Payment Systems have also made similar indications in statements made to other industry news outlets. PaymentsJournal regrets the oversight.

Instances of merchant acquirers offering “interchange pass-through” or “interchange plus” pricing – where the acquirer adds a consistent markup across all card interchange tiers, typically between 40 and 80 basis points for low risk merchants – have been steadily cropping up as the merchant market has become more savvy regarding card acceptance and merchant services.

Until now, however, none have made a public announcement referencing the direct pass-through of interchange savings on debit card transactions associated with the Durbin amendment. Sarasota, FL based ISO has today made such an announcement along with the launch of their online merchant services quote generator:

“You can receive an instant online quote in as little as 1 minute and an on-line application is there for you to complete. Just print it out, sign and fax in. We’ll call you back to cross the T’s and dot the I’s, so you can start increasing your bottom line profits immediately. It’s as simple as that,” said Gino Kauzlarich, president of, Inc.

The program offers Interchange Pass Through (IPT) pricing to all businesses regardless of their size or credit card processing volume. A merchant account that uses an Interchange Pass Through pricing method applies processing fees by adding a small percentage to the actual interchange (Wholesale) rate for every transaction and all dues and assessments are passed through directly at cost. This ensures that a merchant only pays the wholesale rate in addition to a small mark-up that goes to their merchant service provider.

“Because it is a true IPT program, 100% of the Durbin Amendment cost savings will accrue to our merchant’s benefit. Our merchant’s will be free to keep the savings, or pass them on to their customers,” said Kauzlarich.

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