New categories, retired programs, and why your effective rate moved
Card networks publish interchange updates roughly twice a year, and the 2026 cycles were unusually busy. Alongside the settlement-driven reduction on eligible credit volume, the networks introduced new interchange categories, adjusted commercial card pricing, expanded fees tied to authorization behavior, and retired data programs that many B2B merchants had relied on for reduced rates. This guide translates those updates into what a small business actually sees on a statement, and which line items are worth questioning at your next review.
Several new interchange categories launched in 2026, largely aimed at card-not-present, commercial, and premium rewards volume. Categories are how networks price risk and data quality: the same $100 sale can settle at very different rates depending on how it was captured and what data accompanied it.
Certain Level 2 enhanced-data incentives were sunset in 2026, leaving Level 3 submission as the main path to reduced commercial rates. B2B merchants that were qualifying on Level 2 alone typically saw a rate increase unless their gateway was upgraded to pass full line-item detail.
The networks widened fees tied to how transactions are authorized, including charges that apply to declined and improperly formatted authorizations. Businesses that retry declines aggressively, run card-not-present keyed transactions, or leave authorizations uncaptured now pay more for that behavior than they did in 2025.
Interchange is passed through at cost by every processor — nobody can negotiate it. What you can evaluate is your markup, your downgrade rate, and your fixed fees. Divide total fees by total card volume to get your effective rate, then compare it across three months. A rising effective rate on stable volume usually means downgrades, not network increases.
No. Interchange is set by the card networks and paid to the issuing bank. Processors can only influence markup and how well your transactions qualify.
Assessment and service fee increases, plus more transactions downgrading to expensive categories, can outweigh a ten-basis-point reduction.
A transaction that misses the data or timing requirements for its best-fit category and settles at a higher-cost one instead — common with keyed entries and late batches.
Typically twice a year, in April and October, with occasional off-cycle adjustments.
Complete your online merchant application, keep 100% of your card sales, and unlock the full Tasskel business suite with your account.
