Card brand networks quietly updated their interchange tables again ahead of Q3 2025. For merchants, even small category-specific changes can show up as real margin pressure across monthly processing volume.
What Changed and When
Visa and Mastercard both update their interchange rate schedules twice a year, typically in April and October. The latest changes include adjustments across card-not-present transactions, regulated debit, select high-risk categories, recurring billing, and rewards card transactions.
Quick reminder: Interchange is the fee paid by your acquiring bank to the cardholder’s issuing bank every time a card transaction is processed. It is only one part of the total processing cost, but it is often the largest component.
The Rate Changes: Affected Merchant Categories
The following table shows sample Q3 2025 changes by merchant category. Increases are marked in green, decreases in red, and no-change categories in gray. All figures are percentage points added to or subtracted from the base interchange rate for card-present consumer credit transactions.
| Merchant Category | Previous Rate | New Rate (Q3 2025) | Change |
|---|---|---|---|
| Restaurants & Food Service | 1.80% | 1.95% | +0.15% |
| Retail — General Merchandise | 1.65% | 1.73% | +0.08% |
| E-Commerce — Standard | 2.10% | 2.10% | No Change |
| Grocery & Supermarkets | 1.15% | 1.15% | No Change |
| Fuel & Gas Stations | 1.15% | 1.08% | -0.07% |
| Healthcare & Medical Services | 1.65% | 1.77% | +0.12% |
| Hotels & Lodging | 2.05% | 2.05% | No Change |
| High Risk — Nutraceuticals | 2.95% | 3.10% | +0.15% |
| Subscription / Recurring Billing | 2.20% | 2.33% | +0.13% |
| Business-to-Business (B2B) | 2.40% | 2.30% | -0.10% |
High Risk Merchants: Pay Attention
The 0.15% increase for nutraceutical and supplement merchants is the largest single-category increase in this cycle. At $50,000/month in volume, that’s an extra $75/month, or $900/year, added directly to your cost base with zero added value. Subscription merchants are also being hit hard, with a 0.13% increase that compounds with every recurring charge.
Why This Is Happening
The card brands cite factors such as fraud losses, risk exposure, rewards program costs, and network investments. Merchants feel the impact because these costs flow through processor statements, especially when pricing is bundled or when statement categories are difficult to read.
The card networks increase interchange rates in a market where most merchants still need to accept card payments. That makes transparency and processor support especially important.
What Merchants Can Do About It
Merchants are not powerless. Start by reviewing your monthly statement, identifying card mix, checking whether you are on interchange-plus or bundled pricing, and confirming that transactions are qualifying correctly.
- Request an updated processing statement review
- Confirm gateway and terminal settings are optimized
- Review chargeback ratios and fraud controls
- Consider dual pricing or cash discount style programs where appropriate
- Ask whether your account is still priced correctly for your current business model
MIDsource’s Dual Pricing program is one of the most effective buffers against any interchange rate change. Because you’re no longer absorbing processing costs yourself, card brand rate increases simply don’t affect your bottom line in the same way. Dual Pricing / Zero Fee Processing
The Bottom Line
Interchange rate increases are a recurring reality of accepting card payments. The Q3 2025 changes are not catastrophic, but they are material, particularly for restaurant owners, healthcare providers, subscription businesses, and high risk merchants.
If you’re currently on a bundled pricing plan, now is the time to ask your processor for interchange-plus pricing. If you’re processing significant monthly volume, the Dual Pricing program may save you more per month than these increases cost. Contact a MIDsource specialist to review your current setup.
