Utility merchants who provide Electricity, Gas, or Water get heavily-reduced interchange rates from Mastercard
Mastercard has incredibly low interchange rates for merchants who are classified as a Utility. As these payments are considered “low risk” from a processing perspective, the interchange rates reflect that. You’ll see that many of the rates have no percentage fee, and just a flat, per-transaction fee.
- Must be classified as a Utility – Water, Gas, Electric, Sanitation (MCC 4900)
- Key-enter transaction, magnetic stripe, contactless, or chip data read, obtain customer’s signature.
- Authorize and settle within 1 day.
- Obtain and pass 1 valid electronic authorization.
- Can settle within 10% of authorized amount.
What are the rates?
Regulated Debit – 0.05% + $0.22
Downgrade: This card type does not downgrade.
Only Utility-merchants with an MCC of 4900 will qualify.