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Navigating Mastercard's New Mandate: A Guide for Merchants

Mar 26, 2025

In July 2025, Mastercard will introduce a new fee structure targeting transactions with undefined authorization types. This mandate will add 25 basis points (bps) of the transaction amount, or a minimum of $0.04 USD per transaction to US volume, with Canada following suit in September. This can turn into a cost burden for merchants, necessitating a reevaluation of their current payment processing strategies.

4 mins read
AuthorZaid Kanaan, Kassie Vaughan, J.B. Meacham, Per Anell, Matthew Arkin
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