Payments Acceptance Costs The $224 Billion Question Answered in CMSPI’s State of the Industry Report
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Japan, the U.S., and Mexico have some of the highest card fees in the world. THE GLOBAL PLAYING FIELD IS UNEVEN
CARD ACCEPTANCE FEES BY COUNTRY
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
UK 2018 Credit & Debit
EU-12 2022 Debit
EU-12 2022 Credit
Japan 2021 Credit
Canada 2023 Debit
Canada 2023 Credit
Australia 2021 Debit
Australia 2021 Credit
U.S. 2023 Debit
U.S. 2023 Credit
China 2023 Debit
China 2023 Credit
NZ 2023 Credit
Mexico 2023 Debit
Mexico 2023 Credit
Interchange
Network Fees
Acquirer Fee
Total MSC
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Source: CMSPI estimates and analysis
Interchange fees alone amounted to $143 billion in 2023. CMSPI ESTIMATES THAT U.S. MERCHANTS PAID $224 BILLION TO ACCEPT CARD PAYMENTS IN 2023
U.S. CARD ACCEPTANCE FEES
70
60
50
40
30
20
10
0
Q4
Q2
Q3
Q1
Visa/Mastercard Interchange Fees
Visa/Mastercard Network Fees
Processor Fees
Amex Card Fees
Discover Card Fees
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Source: CMSPI estimates and analysis.
In countries like Sweden, by 2009 cards were already 55% cheaper to accept than cash. 1 EVEN CASH IS GETTING MORE EXPENSIVE
AVERAGE COST PER CASH TRANSACTION IN USD
8.00
7.00
6.50
6.00
5.00
4.00
3.00
2.58
2.00
1.28 1.32
1.00
0.29 0.31
0.24 0.29
0.12 0.19
0.17 0.20
0.00
Australia 2006 & 2013
Canada 2014 & 2018
Netherlands 2002 & 2009
Norway 2007 & 2013
Sweden 2002 & 2009
United States 1999 & 2018
Year 1
Year 2
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Source: CMSPI estimates and analysis. 1. CMSPI analysis of data from the Kansas City Fed.
The share of cash transactions in the Netherlands decreased more than 50% in 2021 compared to 2016. 2 CASH VOLUMES ARE DECLINING
CASH TRANSACTION SHARES OVER TIME
30%
25%
20%
15%
10%
5%
0%
2016
2017
2018
2019
2020
2021
Australia
Canada
Netherlands
Norway
Sweden
United States
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Source: Euromonitor. 2. CMSPI analysis of data from Euromonitor.
About the State of Industry Report Developed alongside 11 of the world’s leading payments experts, CMSPI’s flagship report aims to empower merchants and advocates with the information they need to execute payments for their organizations in the market today. Want to understand how tokenization works, which payment methods to offer in different geographies, or why payments regulation differs by market? CMSPI’s Insights team has created the SOIR to be the first of its kind, developed with merchant input, to fuel merchant decision-making.
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What You’ll Learn in Section 1 of the SOIR
Which parties are involved in making a transaction happen, and how are they paid?
How do card fees differ by country and payment channel?
How has the cost of payments acceptance grown over time?
What are dual and single-message transactions?
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This document is for informational purposes only and does not guarantee the functionality or features of any CMSPI product or service. CMSPI does not represent nor warrant that this document is complete or error free. Copyright © 2024 CMSPI All rights reserved.
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