With little warning and no consultation, Mastercard has changed the ATM fee structure for Mastercard-branded cards, as well as its Cirrus card network.
The changes are complicated, but they break down into two basic categories:
1. Mastercard pays an “interchange fee” on every ATM withdrawal involving its Mastercard/Cirrus networks. As of April 1, MasterCard cut those payments by 30 percent.
2. Mastercard charges a fee for any transaction involving its Mastercard and Cirrus networks. As of April 16, Mastercard more than tripled that fee.
Added together, Mastercard is cutting its per-transaction payment by more than 62 percent on most transactions — dealing serious harm to every nonbank company that deploys ATMs. Overall, the move is expected to cost the nonbank ATM industry up to $26 million a year.
Other cards and networks currently are not affected.
BOTTOM LINE
Here’s what it means for ATM owners and operators: As of April 1, Mastercard is taking an additional 28 cents or so from every Mastercard-related transaction processed by a nonbank ATM.
WHAT YOU CAN DO
We will give the Mastercard deduction its own line on our monthly statements, so you can see exactly how much this affects your residual amounts.
We recommend raising your surcharge to cover the Mastercard/Cirrus pass-through. You might consider urging your customers to use any other card, such as Visa, Discover, American Express or regional banking cards.
You can also contact Mastercard/Cirrus directly at 1-800-627-8372.
For further updates, announcements and current industry headlines, check the “News” section on our ATM Network home page.
Tags: ATM, atm fees, ATM machines, Cash machine
