Chargeback changes with the Mastercard Dispute Resolution Initiative
This cap is known as the Cross Border Domestic Interchange Program, or CBDIP. Below are some key points to cover all the questions you may have regarding CBDIP, and give some insights as to whether your business should register.
For some merchants, the new rates will translate into significant cost savings on the interchange rate in Europe. However, this needs to be judged on a case-by-case basis due to a number of requirements attached to applying the rates, and the concurrent reduction of domestic interchange rates in some markets.
The new rates are 0.20% for immediate debit (i.e., debit cards), and 0.30% for deferred debit (i.e., credit cards).
There are four requirements:
Will all merchants be able to save money with the CBDIP rate?
No. We advise that the CBDIP rate is most interesting to merchants that meet two or more of the following criteria:
Merchants need to register with Visa Europe, through their acquirer (such as Adyen) for an SMI. The registration process takes about sixty days.
Merchants can claim the rates as of January 1, 2015, but only if they register between October 21 and November 14 2014.
Merchants are still able to register after this date, however bear in mind that you will not be able to claim the rates as of January 1. In this situation, the normal timeline of approximately sixty days (as indicated by Visa) will apply.
No. This program is only open to non Netherlands-based clients within the scope of Adyen’s European Visa licenses, which include UK, ES, DE, SE, plus a number of other markets.
Only domestic traffic in markets in which the merchant has a legal entity are eligible for this program.
No. Adyen already operates on an Interchange+ pricing structure. However, an addendum will be added to your contract for administration costs.
There are no changes required from the merchant side. Adyen will attach the SMI to transactions from our side.
Get in touch with your account manager to register!
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