The Federal Reserve (the Fed) Board has given its approval to the new payment-services fees schedule for this year. It’s 2.4% higher as compared to the previous year. If you want to learn more about the topic and discover an exceptional merchant services provider, keep on reading this post.
Payment-Services & Credit Card Processing Fees
Credit card processing fees represent the cost that merchants pay for credit card payment processing. The total cost is based on more than one piece such as transaction fees, flat fees, and incidental fees.
In Q1 of 2019, the annualized rate of real GDP growth accounted for 3.1%. Then, it fell to 2.0% during Q2 of the same year and 2.1% in Q3. When it comes to the inflation rate, 2.3% was observed at the end of 2019.
The rapidly-changing and evolving world of eCommerce once again highlights the importance of working only with a true payment expert in your field. Only a reputable merchant services provider can guarantee the safest and cheapest payment-services fees for your business. So, look for a reliable alternative online lender and payment processor that can save you money and time.
The new payment-related fees took effect on January 2. As a result of these changes:
- The average price will grow by 3.3% for check services
- 7% for Fedwire Funds
- 9% for FedLine customers
- The FedACH service, National Settlement Service, as well as Fedwire Securities Service won’t see any changes
Index Changes in 2019
The Consumer Price Index for All Urban Consumers (CPI-U) grew 0.2% in December 2019 on a seasonally adjusted basis. In November, it increased by 0.3%. This is according to the U.S. Bureau of Labor Statistics. The past 12 months witnessed a 2.3% rise in items index numbers before the seasonal adjustment.
The private sector adjustment factor (PSAF) of $18.9 million has also received its approval for 2020. This points to a $1.1-million rise from $17.8 million in 2019. By the way, December saw a rise in the gasoline, shelter, and medical care indexes. That represented most of the increase in all items index on a seasonally adjusted basis.
To sum up, in 2019, the U.S. economy expanded at an above-the-long-term average pace. The Fed has already given its approval to payment-services fees in 2020.Get Started Now