Visa MasterCard Interchange Rate Changes

Visa

Partial Authorization Non-Participation Fee
Effective October 1, 2009, Visa will begin assessing a $0.01 per transaction fee for Automated Fuel Dispenser (AFD) merchants (MCC 5542), if they are not participating in Partial Authorization program. The fee will be applied to all transactions when the MCC is 5542 and the Partial Authorization Indicator is not present. Visa will eliminate this fee in 2010 when support of partial authorizations will become a requirement for the CPS/Automated Fuel Dispenser interchange program.

Assessment of Interregional Fee Rates for US Acquirers:Currently, U.S. acquirers receive U.S. domestic rates for both U.S. Domestic and international transactions when the merchant is in the U.S. International transactions are defined as transactions from a U.S. acquiring BIN where the issuer country is different from the merchant country. Effective October 16th, international transactions will no longer receive U.S. Domestic rates. Visa has established the following interregional fee rates for which those transactions will qualify:

Program Description	Visa Card Product	Rate
Interregional-Business/Signature Business	Business Signature Business	1.80%
Interregional-Corporate	Corporate	1.80%
Interregional-Purchasing	Purchase	1.80%
Interregional-Consumer Infinite	Infinite	1.80%
Interregional-Consumer Signature	Signature Business (effective Nov 2009)	1.80%
Interregional-Electronic	Consumer Credit and Debit	1.10%
Interregional-Electron	Electron	1.10%
Interregional-Issuer Chip	Consumer Credit and Debit Chip Cards	1.20%
Interregional-Electron Issuer Chip	Electron Issuer Chip	1.20%
Interregional-Airline	Consumer Credit and Debit	1.10%
Interregional-Airline Electron	Consumer Electron Credit and Debit	1.10%
Interregional-Secure eCommerce	Consumer Credit and Debit	1.44%
Interregional-Secure eCommerce Electron	Consumer Electron Credit and Debit	1.44%
Interregional -eCommerce Merchant	Consumer Credit and Debit	1.44%
Interregional -eCommerce Merchant Electron	Consumer Electron Credit and Debit	1.44%
Interregional Standard	Consumer Credit and Debit	1.60%
Interregional	Consumer Electron Credit and Debit	1.60%

International Acquiring Fee (IAF): In addition to shifting applicable international purchase transactions in the U.S, to Visa’s interregional interchange fee structure, a fixed Interchange Acquiring Fee (IAF) will also apply to these transactions and will be passed through. The IAF will be:

0.45% of the transaction amount for sales transactions and 0.90% of the transactions amount for sales transactions for high risk merchants for Merchant Category Codes 5962, 5966, and 5967.

Changes to Fee Qualification for Fuel Transactions: Visa increased the transaction maximum for CPS/Automated Fuel to $125 as a temporary solution to address the increased gas prices back in July 2008. Visa will be reverting back to the transaction maximum of $75. Chargeback protection will remain the same for AFD Merchants that perform a $1 Status Check and submit (consumer or commercial non-Fleet) transactions that exceed $75, may be subject to chargeback reasons: 1) No Authorization, and 2) Transaction Exceeds Limited Amount.

MasterCard

The Acquirer Cross-border Assessment will increase from 40 basis points (0.40%) with a 10 basis point (0.10%) credit when the transaction is in USD to 80 basis points (0.80%) with a 40 basis point (0.40%) credit when the transaction is in USD.

Fee Descriptor	Fee Prior to 10/17/2009	Fee Effective on 10/17/2009
Acquirer Program Support Fee	0.45% of the transaction amount	0.55% of the transaction amt
Cross Border (trans amount in USD)	0.30% of the transaction amt	0.40% of the transaction amt
Cross Border (trans amount in non-USD)	0.40% of the transaction amt	0.80% of the transaction amt

Utility Program Interchange Modifications: MasterCard will now allow transactions that involve the following card product types to qualify for its MasterCard Utility Interchange program:

World Elite MasterCard for Business, MasterCard Business Card, and World MasterCard for Business

Passenger Railway Interchange Modifications: MasterCard will now require passenger railway transactions (MCC 4112) to be submitted under the Public Sector credit and the Emerging Markets debit interchange programs.

Program Description	Rate
Public Sector	1.55% + $0.10
World Public Sector	1.55% + $0.10
World High Value Public Sector	1.55% + $0.10
Enhanced Public Sector	1.55% + $0.10
World Elite Public Sector	1.55% + $0.10
Emerging Markets (Debit)	0.80% + $0.25

Passenger Railway transactions will no longer be eligible for the following interchange programs:

Program Description	Rate
Enhanced Passenger Transport	1.90% + $0.10
Passenger Transport Credit	1.75% + $0.10
Passenger Transport Debit	1.60% + $0.15

July 2009

In April 2009, MasterCard will increased its Acquirer Access Fee by 270%, raising its per transaction fee from $0.005 to $0.0185. In July 2009, Visa will do the same by increasing its Acquiring Processing Fee 290% from $0.005 to $0.0195.

The acquirer processing fee is a $0.0195 per transaction fee established by Visa in the spring of 2009. This fee is kept by Visa. This fee replaces a $0.005 per transaction fee.

April 2009

Visa

Commercial Cards
Visa is making two adjustments that will affect U.S. transactions processed under all three commercial products:

The Level II data incentive interchange rate will be increased.
The Standard interchange rate will be increased.

Additionally, Visa is making adjustments specific to Visa Corporate and Visa Purchasing products:

For Visa Corporate products, Visa is reducing the Retail interchange rate and increasing the Electronic interchange rate.
For Visa Purchasing products, Visa is increasing the Retail interchange rate, the Card Not Present interchange rate, and the Electronic interchange rate.

Changes for GSA Purchasing Card Transactions
Visa will allow GSA Purchasing Card and GSA Fleet Card transactions accepted at Non T&E* Merchant locations to be eligible for the Level 3 Interchange Rate program

Transactions must meet the existing level 3 rate criteria to qualify
- There are no changes to the existing Level 3 data requirements
Today the best rate is Level 2

*T&E MCCs include: 3000-3999, 4112, 4411, 4511, 4722, 5812, 5814, 7011, and 7512

Visa will increase the existing GSA Large Ticket Rate for GSA Purchasing Card.

Visa will delete the minimum transaction amount of $5000 and will delete the GSA Large Ticket I rate program

New Debt Repayment Fee Program

Visa is introducing a new interchange fee program and rate for domestic debt repayment transactions
Only transactions for collectible consumer debt on auto loans, credit card payment, mortgage payments, and student loans are allowed
Only domestic consumer debit card transactions from the following MCC’s are eligible
- 6012 —Financial institutions–merchandise and services
- 6051 —Nonfinancial institutions–foreign currency, money orders (not wire transfer), and travelers cheques

New CPS/Debit Tax Payment Fee

In the October 2002 business release, Visa announced a pilot program for U.S. federal, state, and real estate property tax payments which is scheduled to end in October 2008
With the expiration of the tax pilot, Visa will implement a new interchange rate program for Visa consumer debit card transactions submitted by acquirers from a participating tax authority or third-party service provider accepting payments on behalf of the tax authority

MasterCard

Interchange

Consumer Bill Payment
Consumer Bill Payment

Utility Rate Program Changes
- MasterCard will no longer require the “U” code to qualify for Utility Interchange nor are they requiring registration
- Utility (MCC 4900) consumer card qualified sales will only be eligible for the Utility Interchange rate program(s)
MasterCard will no longer allow the Merit 3 or Service Industries break-even
Service Industries Rate Program Changes
- MasterCard is removing the following Merchant Categories as eligible MCCs to qualify for the Service Industries program (SIP)
4812 (Telecommunication Equipment/Sales)
5960 (Insurance – Direct Marketing)
6300 (Insurance Sales, Underwriting, and Premiums)
UCAF (Full and Merchant), Merit III and Merit I Debit Program Changes
- MasterCard is removing the following Insurance merchant categories as eligible for the UCAF (Full and Merchant), Merit I, and Merit III Consumer Debit interchange programs
5960 (Insurance – Direct Marketing)
6300 (Insurance Sales, Underwriting, and Premiums)
MasterCard will no longer allow Real Estate (MCC 6513) to qualify for Merit III (Base) and Merchant UCAF Consumer Debit Rate programs

Chargebacks

Revised Standards for the Quick Payment Service Program

MasterCard is requiring all QPS merchants, regardless of Merchant Category Code, to obtain full authorization in order to be chargeback protected
The following MCC’s that previously received chargeback protection with no authorization required, will have to obtain full authorizations
- 5814 (Fast Food Restaurants)
- 7832 (Motion Picture Theaters)
- 7523 (Automobile Parking Lots and Garages)