USA Technologies Inc., a provider of wireless, cashless payment and M2M telemetry solutions for self-serve small-ticket retail industries, advised customers earlier this month the company would no longer accept MasterCard debit transactions, noted Mike Lawlor, senior vice president of sales and business development. Lawlor noted that USA Technologies’ card payment systems will continue to accept all other debit and prepaid card brands, as well as all credit cards, including MasterCard, Visa, American Express and Discover, with no change to its current card processing rates. Lawlor said USA Technologies is still working with MasterCard to secure a competitive debit interchange rate for the small-ticket market. “We want to accept MasterCard debit, but at a rate structure we can keep our customer’s processing rates intact,” he said. “The elimination of MasterCard debit acceptance is a loud message from the vending community that MasterCard’s approximately 250 percent increase in debit card processing fees for a typical $1.50 vend purchase is not acceptable. With MasterCard debit only representing 15 percent of our customer’s cashless transactions, the impact on their business, as well as our business, appears to be negligible.”
Lawlor said USA Technologies is working with its vending customers to communicate the elimination of MasterCard debit acceptance in addition to educating their customers about MasterCard new debit fee structure.