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Here are the recent and upcoming changes to Visa/MasterCard Interchange and Debit Network structure
Visa Announcement
Visa has announced an increase on the Visa Assessment fee. The Assessment fee will be changing from .0925% to .11% effective July 1, 2010.
PIN Debit Announcements
Effective April 1, 2010, NYCE is implementing a “Premier Issuer†fee and STAR is implementing an “All STAR†fee.
Effective June 1, 2010, PULSE is implementing a “PULSE Pay Choice†fee.
This Premium mark-up by each Network is an additional incentive paid to Issuing Banks that commit a specific amount of card issuing volume to a network. The Premium Fee will only be passed on transactions where the card belongs to a qualifying Issuer. The volume is estimated to be between 15% and 50% for each of the three networks. This is an additional per item fee assessed on top of the regular debit network fees. The rates are as follows:
October 2010
Visa has announced additions to the CPS/Small Ticket Interchange Program. Effective October 2010 CPS/Small Ticket has been extended to most merchant category codes (MCCs). Most merchants will be eligible to qualify for the U.S. CPS/Small Ticket Interchange program. Current CPS/Small Ticket Interchange applies to transactions less than $15. The Visa Small Ticket Credit Interchange is 1.65% + $0.04 and the Visa Small Ticket Debit Interchange is 1.55% + $0.04.
MCCs excluded from U.S. CPS/Small Ticket Interchange Reimbursement Fee include Grocery Stores, Convenience Stores, Service Stations, Wire Transfer Money Orders, Automated Fuel Dispensers, Direct Marketing - Insurance Service, Direct Marketing - Travel-Related Arrangement Services, Direct Marketing - Catalog Merchants, Direct Marketing - Combination Catalog and Retail Merchants, Direct Marketing - Outbound Telemarketing Merchants, Direct Marketing - Inbound Telemarketing Merchants, Direct Marketing - Continuity/Subscription Merchants, Direct Marketing/Direct marketers (not else classified), Financial Institutions - Manual Cash Disbursements, Financial Institutions - Automated Cash Disbursements, Intra-Government Purchases.
Transactions made through merchants eligible for the Visa CPS/Retail and Supermarket performance threshold Interchange programs will not be eligible for the CPS/Small Ticket Interchange program.
July 2010
Visa has announced an increase on the Visa Assessment fee. The Assessment fee will be changing from .0925% to .11% effective July 1, 2010.
Visa has announced changes to their No Signature Required (NSR) program. Effective July 2010, the NSR program has been extended to most merchant category codes (MCCs). Transactions on U.S. issued cards of $25 or less from most all MCCs will be eligible to qualify for the NSR program.
MCCs excluded from Visa’s NSR program include: Wire Transfer Money Orders, Automated Fuel Dispensers, Direct Marketing - Insurance Service, Direct Marketing - Travel-Related Arrangement Services, Direct Marketing - Catalog Merchants, Direct Marketing - Combination Catalog and Retail Merchants, Direct Marketing - Outbound Telemarketing Merchants, Direct Marketing - Inbound Telemarketing Merchants, Direct Marketing - Continuity/Subscription Merchants, Direct Marketing/Direct marketers (not else classified), Financial Institutions - Manual Cash Disbursements, Financial Institutions - Automated Cash Disbursements, Intra-Government Purchases.
May 2010
The debit networks Accel and Pulse have announced several changes to their debit network pricing effective May 1, 2010. The changed fees are as follows:
Accel
Pulse
April 2010
MasterCard
Currently, MasterCard’s Assessment fee is 0.095%. MasterCard will increase the Assessment fee to 0.110%.
MasterCard is introducing new Interregional Interchange programs. A unique brand product classification has been defined for each of the consumer credit, debit, and commercial product families. The following brand products will qualify for the new Interregional Consumer Premium Interchange Structure.
Business Data Rate programs fees have been modified for both World and World Elite categories.
MasterCard is revising the qualification criteria for Commercial Face to Face and Commercial Data Rate II. Effective April 2010, zero will no longer be accepted as a valid tax value to qualify for these rate categories. Only non-zero tax values that fall within the specified valid range will be accepted. Therefore, if a commercial transaction has no sales tax, the transaction will downgrade to a lower Interchange level.
MasterCard is adding a new Interchange program for MasterCard Enhanced Small Business. The following card programs will be supported in the U.S. Small Business Sector:
MasterCard Pay with Rewards Service
This service provides cardholders with the ability to redeem their loyalty points as currency to pay for purchases at any merchant where MasterCard-branded payment cards are accepted. The cardholder will use a separately issued “redemption card,†which will be a MasterCard debit product, to initiate points redemption transactions at the POS. Participating card issuers will register redemption cards into the MasterCard Pay with Rewards service. At the time of redemption, a Pay with Rewards cardholder will present his or her redemption card as any other payment card today.
New Interchange Fees for Pay with Rewards (Consumer Core, Consumer Debit, Consumer World and Commercial) will start out at 0.90% + $0.00
Visa
Visa is implementing modifications to the No Signature Required program:
Visa will adjust the following U.S. Visa Debit Interchange reimbursement fees.
Fee Program
Current Fee
April 2010 Fee
CPS Retail Debit
1.03% + $0.15
0.95% + $0.20
CPS Supermarket Debit
1.03% + $0.15 ($0.35 max)
0.95% + $0.20 ($0.35 max)
CPS Service Station Debit
0.70% + $0.17 ($0.95 max)
0.75% + $0.17 ($0.95 max)
CPS Automated Fuel Dispenser Debit
0.70% + $0.17 ($0.95 max)
0.75% + $0.17 ($0.95 max)
Interlink PIN Debit
Visa has announced changes in the pricing for Interlink debit transactions.
Fee Program
Current Fee
April 2010 Fee
Interlink Standard— IV
0.75% + $0.17
0.95% + $0.20
Interlink Supermarket—
Performance Threshold IV
$0.25
0.95% + $0.20 ($0.35 max)
Interlink Standard—Fuel
0.70% + $0.17 ($0.95 max)
0.75% + $0.17 ($0.95 max)
Interlink Quasi Cash
1.80% + $0.10
2.30% + $0.10
NYCE PIN Debit
March 2010
STAR PIN Debit has announced modifications to the current rates effective March 1, 2010. The changes are as follows:
February 2010
NYCE PIN Debit
CU24 PIN Debit
Visa Announcement
Visa has announced an increase on the Visa Assessment fee. The Assessment fee will be changing from .0925% to .11% effective July 1, 2010.
PIN Debit Announcements
Effective April 1, 2010, NYCE is implementing a “Premier Issuer†fee and STAR is implementing an “All STAR†fee.
Effective June 1, 2010, PULSE is implementing a “PULSE Pay Choice†fee.
This Premium mark-up by each Network is an additional incentive paid to Issuing Banks that commit a specific amount of card issuing volume to a network. The Premium Fee will only be passed on transactions where the card belongs to a qualifying Issuer. The volume is estimated to be between 15% and 50% for each of the three networks. This is an additional per item fee assessed on top of the regular debit network fees. The rates are as follows:
Code:
* The NYCE Premier Issuer Fee is an additional $0.011 per item, effective April 1, 2010
* The ALL-STAR Fee is an additional $0.025 per item, effective April 1, 2010
* The PULSE Pay Choice Fee is additional $0.05 per item, effective June 1, 2010Visa has announced additions to the CPS/Small Ticket Interchange Program. Effective October 2010 CPS/Small Ticket has been extended to most merchant category codes (MCCs). Most merchants will be eligible to qualify for the U.S. CPS/Small Ticket Interchange program. Current CPS/Small Ticket Interchange applies to transactions less than $15. The Visa Small Ticket Credit Interchange is 1.65% + $0.04 and the Visa Small Ticket Debit Interchange is 1.55% + $0.04.
MCCs excluded from U.S. CPS/Small Ticket Interchange Reimbursement Fee include Grocery Stores, Convenience Stores, Service Stations, Wire Transfer Money Orders, Automated Fuel Dispensers, Direct Marketing - Insurance Service, Direct Marketing - Travel-Related Arrangement Services, Direct Marketing - Catalog Merchants, Direct Marketing - Combination Catalog and Retail Merchants, Direct Marketing - Outbound Telemarketing Merchants, Direct Marketing - Inbound Telemarketing Merchants, Direct Marketing - Continuity/Subscription Merchants, Direct Marketing/Direct marketers (not else classified), Financial Institutions - Manual Cash Disbursements, Financial Institutions - Automated Cash Disbursements, Intra-Government Purchases.
Transactions made through merchants eligible for the Visa CPS/Retail and Supermarket performance threshold Interchange programs will not be eligible for the CPS/Small Ticket Interchange program.
July 2010
Visa has announced an increase on the Visa Assessment fee. The Assessment fee will be changing from .0925% to .11% effective July 1, 2010.
Visa has announced changes to their No Signature Required (NSR) program. Effective July 2010, the NSR program has been extended to most merchant category codes (MCCs). Transactions on U.S. issued cards of $25 or less from most all MCCs will be eligible to qualify for the NSR program.
MCCs excluded from Visa’s NSR program include: Wire Transfer Money Orders, Automated Fuel Dispensers, Direct Marketing - Insurance Service, Direct Marketing - Travel-Related Arrangement Services, Direct Marketing - Catalog Merchants, Direct Marketing - Combination Catalog and Retail Merchants, Direct Marketing - Outbound Telemarketing Merchants, Direct Marketing - Inbound Telemarketing Merchants, Direct Marketing - Continuity/Subscription Merchants, Direct Marketing/Direct marketers (not else classified), Financial Institutions - Manual Cash Disbursements, Financial Institutions - Automated Cash Disbursements, Intra-Government Purchases.
May 2010
The debit networks Accel and Pulse have announced several changes to their debit network pricing effective May 1, 2010. The changed fees are as follows:
Accel
Code:
* Retail merchants will be billed at 0.80% + $0.21 per transaction with no maximum fee per transaction.
* Quick Service Restaurant (QSR) merchants will be billed at 0.95% + $0.18 per transaction and the maximum fee for QSR transactions has been eliminated.
* Supermarket merchants will be billed a total of $0.31 per transaction.
* Petroleum merchants will be billed at 0.80% + $0.19 per transaction with no maximum transaction fee. These transactions were previously bundled with Retail and will now post separately.
* PINless Utility merchants will now post separately from regular PINless and will be billed a total of $0.660 per transaction.
* All other PINless transactions will be billed at 0.75% + $0.21 per transaction with a maximum transaction fee of $1.28.
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* Retail merchants will be billed at 0.86% + $0.21 per transaction with no maximum fee per transaction.
* Supermarket merchants will be billed a total of $0.345 per transaction.
* Petroleum merchants will be billed at 0.71% + $0.21 per transaction with a maximum transaction fee of $1.03.These transactions were previously bundled with Retail and will now post separately.
* PINless Utility merchants will be billed a total of $0.755 per transaction.
* All other PINless transactions will be billed at 0.80% + $0.27 per transaction.MasterCard
Currently, MasterCard’s Assessment fee is 0.095%. MasterCard will increase the Assessment fee to 0.110%.
MasterCard is introducing new Interregional Interchange programs. A unique brand product classification has been defined for each of the consumer credit, debit, and commercial product families. The following brand products will qualify for the new Interregional Consumer Premium Interchange Structure.
Code:
* MasterCard World Card
* MasterCard World Elite
* World MasterCard for Business
* MasterCard Corporate World
* World Elite MasterCard Business
* MasterCard Corporate World EliteMasterCard is revising the qualification criteria for Commercial Face to Face and Commercial Data Rate II. Effective April 2010, zero will no longer be accepted as a valid tax value to qualify for these rate categories. Only non-zero tax values that fall within the specified valid range will be accepted. Therefore, if a commercial transaction has no sales tax, the transaction will downgrade to a lower Interchange level.
MasterCard is adding a new Interchange program for MasterCard Enhanced Small Business. The following card programs will be supported in the U.S. Small Business Sector:
Code:
* MasterCard BusinessCard Card
* MasterCard Professional Card
* MasterCard Executive BusinessCard CardThis service provides cardholders with the ability to redeem their loyalty points as currency to pay for purchases at any merchant where MasterCard-branded payment cards are accepted. The cardholder will use a separately issued “redemption card,†which will be a MasterCard debit product, to initiate points redemption transactions at the POS. Participating card issuers will register redemption cards into the MasterCard Pay with Rewards service. At the time of redemption, a Pay with Rewards cardholder will present his or her redemption card as any other payment card today.
New Interchange Fees for Pay with Rewards (Consumer Core, Consumer Debit, Consumer World and Commercial) will start out at 0.90% + $0.00
Visa
Visa is implementing modifications to the No Signature Required program:
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* MCC 5993 (Cigar Stores/Stands) is being added as an eligible MCC
* Standardize amount to equal to or less than US $25.00 to be eligible.
* Transaction with cash back amounts will not be eligible.Fee Program
Current Fee
April 2010 Fee
CPS Retail Debit
1.03% + $0.15
0.95% + $0.20
CPS Supermarket Debit
1.03% + $0.15 ($0.35 max)
0.95% + $0.20 ($0.35 max)
CPS Service Station Debit
0.70% + $0.17 ($0.95 max)
0.75% + $0.17 ($0.95 max)
CPS Automated Fuel Dispenser Debit
0.70% + $0.17 ($0.95 max)
0.75% + $0.17 ($0.95 max)
Interlink PIN Debit
Visa has announced changes in the pricing for Interlink debit transactions.
Fee Program
Current Fee
April 2010 Fee
Interlink Standard— IV
0.75% + $0.17
0.95% + $0.20
Interlink Supermarket—
Performance Threshold IV
$0.25
0.95% + $0.20 ($0.35 max)
Interlink Standard—Fuel
0.70% + $0.17 ($0.95 max)
0.75% + $0.17 ($0.95 max)
Interlink Quasi Cash
1.80% + $0.10
2.30% + $0.10
NYCE PIN Debit
Code:
* NYCE will implement a Premier Issuer fee of $0.011 per transaction. This will be an addition to the existing interchange fees.STAR PIN Debit has announced modifications to the current rates effective March 1, 2010. The changes are as follows:
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* Retail merchants will be billed at 0.80% + $0.2125 per transaction. The maximum transaction fee is being eliminated.
* Quick Service Restaurant merchants will be billed at 01.25% + $0.1925 per transaction. The maximum transaction fee is being eliminated.
* Petroleum merchants will continue to be billed at 0.80% + $0.1725 per transaction however the maximum transaction fee is being eliminated.
* Supermarket merchants will be billed at $0.3025 per transaction
* Medical Retailer merchants will be billed at 1.20% + $0.2425 for each transaction equal to or less than $15.00. Transactions over $15.00 will be assessed the standard Retail rates.
* Small Ticket Retailer merchants will be billed at 1.25% + $0.1925 for each transaction equal to or less than $10.00. Transactions over $10.00 will be assessed the standard Retail rates.
* PINless transactions will continue to be billed at 0.65% + $0.1725 per transaction. The maximum transaction fee is being increased to $2.0425.NYCE PIN Debit
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* The switch fee will be decreased from $0.05 to $0.0425.
* Retail merchants will be billed at 0.75% + $0.2125 per transaction. The minimum transaction fee will be decreased to $0.3025.
* Quick Service Restaurant merchants will be billed at 0.55% + $0.1075 per transaction with a maximum fee of $0.5425. The minimum transaction fee will be decreased to $0.2275.
* Supermarket merchants will be decreased to $0.3025.
* Petroleum merchants will be billed at 0.85% + $0.1925 per transaction. The minimum transaction fee will be decreased to $0.3025.
* Returns will be decreased to $0.0425 per transaction.
* PINless Utility merchants will be billed at $0.6550 per transaction.
* PINless Cable merchants will continue to be assessed 1.00% + $0.125 per transaction. The maximum transaction fee will be increased to $1.055.
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* The switch fee will be increased from $0.025 to $0.028.
* Retail merchants will be billed at 0.75% + $0.178 per transaction with a maximum fee of $0.828
* Quick Service Restaurant merchants will be billed at 1.25% + $0.058 per transaction with a maximum fee of $0.478.
* Supermarket merchants will now be billed $0.258 per transaction.
* Drug Store and Pharmacy merchants will be billed at 0.75% + $0.178 per transaction with a maximum fee of $0.828
* Petroleum merchants will be billed at 0.75% + $0.168 per transaction with a maximum fee of $0.728
* Returns will now be billed $0.028 per transaction
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