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Visa Modifications to Credit Interchange - Effective April 18, 2020

Downgrade Interchange Rates on Consumer Credit and Small Business Credit Renamed and Modified

Visa will eliminate the electronic downgrade interchange rates for transactions failing Custom Payment Service (CPS) qualification, effective CPD 18 April 2020. Transactions which fail to qualify for CPS rates—the best available interchange rates in the system—are downgraded to Electronic or Standard interchange rates.

To encourage better processing and to be more descriptive, Visa will rename and modify the interchange rate for downgrade transactions, effective CPD 18 April 2020. The new interchange rate name will be Non-Qualified, and the new interchange rate be set at 3.15% + $0.10 for consumer credit transactions. Small Business credit transactions failing to qualify for CPS will be assessed the Non-Qualified interchange rate of 3.15% + $0.20. Changes are outlined in the tables below.

1 Includes Visa Infinite (not spend qualified)

2 Includes Visa Infinite (spend qualified)

3 Non-Qualified transactions from AFDs and Service Stations are eligible for a U.S. $1.10 cap

Effective April 18, 2020, Visa will eliminate the Business to Business interchange rate on Visa Signature preferred and Infinite (Spend Qualified)

Small Business Tier 5 Spend Qualification Introduced

Effective CPD 18 April 2020, Visa will introduce a new spend qualification tier and associated interchange rates for Small Business products. The new Tier 5 interchange rates will require an annual spend of at least $250,000.

New Interchange Rates and Categories for Small Business Introduced 

Effective CPD 18 April 2020, Visa will modify interchange rates across the Small Business Platform to better reflect market dynamics. Visa will rename the existing Business Electronic interchange rate to Travel for Travel Service MCCs, rename card present and card-not-present programs to Product 2 and Product 1 (similar to the new consumer credit programs announced above) and update the interchange rates as shown in the tables below.

Small Business Tier I

Small Business Tier II

Small Business Tier III

Small Business Tier IV

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