Reframing the interchange (“swipe fees”) picture.

As individual Commercial Card professionals, we cannot control interchange—the largest component of the fee suppliers pay for card acceptance—but we can improve B2B payments. Last week’s news showed us once again that the legal pendulum in the interchange debate will keep swinging. The U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of the Federal Reserve’s 2011 interpretation of the Durbin Amendment and resulting debit interchange regulation.

Whether you are for or against government regulation of interchange, we can all reframe the picture to emphasize B2B payment efficiencies rather than hard dollar costs. It begins with education.   

Suppliers balk at the fees, but few understand them and the offsetting benefits. As end-users, we might be obscuring their vision. For suppliers to maximize the card acceptance benefits of reduced days sales outstanding (DSO) and process efficiencies, we need to cooperate. With P-Card programs, this means providing the card account information in conjunction with order placement, so the supplier can charge the card upon order fulfillment. No invoice generation and handling. No waiting for payment. No chasing payments.

Reframe how you are doing business and everyone can benefit.

Build partnerships with your suppliers by helping them maximize the benefits of card acceptance.

Build partnerships with your suppliers by helping them maximize the benefits of card acceptance.


About the Author

Blog post author Lynn Larson, CPCP, is the founder of Recharged Education. With more than 15 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more

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