Visa recently made changes to their interchange rates (effective 22 February 2020). This includes adding several new rates, removing some and amending others. This change is across several card types, including credit, debit and pre-paid and affects interchange-plus pricing merchants.
Changes to interchange fee structure and rates
February 2020 - What’s changing?
New Rates
Credit
| Card Type | Interchange Rate | |
|---|---|---|
| Card Type Tokenized Online | Interchange Rate 0.21% |
Debit
| Card Type | Interchange Rate | |
|---|---|---|
| Card Type Tokenized Contactless - Low Value (≤AUD 15) | Interchange Rate 0.05 cents | |
| Card Type Tokenized Contactless - Other (>AUD 15) | Interchange Rate 0.15 cents | |
| Card Type Other Card Present -Standard | Interchange Rate 0.05 cents | |
| Card Type Other Card Present - Premium | Interchange Rate 0.15 cents | |
| Card Type Other Card Present - Commercial | Interchange Rate 0.20 % | |
| Card Type Tokenized Recurring | Interchange Rate 0.05 cents | |
| Card Type Tokenized Online | Interchange Rate 0.10% | |
| Card Type Other Card Not Present (CNP) - Standard | Interchange Rate 0.20% | |
| Card Type Other CNP - Premium | Interchange Rate 0.20% | |
| Card Type Other CNP - Commercial | Interchange Rate 0.20% |
Prepaid
| Card Type | Interchange Rate | |
|---|---|---|
| Card Type Tokenized Contactless - Low Value (≤AUD 15) | Interchange Rate 0.08 cents | |
| Card Type Tokenized Contactless - Other (>AUD 15) | Interchange Rate 0.15 cents | |
| Card Type Other Card Present -Standard | Interchange Rate 0.08 cents | |
| Card Type Other Card Present - Premium | Interchange Rate 0.15 cents | |
| Card Type Other Card Present - Commercial | Interchange Rate 0.20 % | |
| Card Type Tokenized Recurring | Interchange Rate 0.05 cents | |
| Card Type Tokenized Online | Interchange Rate 0.10% | |
| Card Type Other Card Not Present (CNP) - Standard | Interchange Rate 0.20% | |
| Card Type Other CNP - Premium | Interchange Rate 0.20% | |
| Card Type Other CNP - Commercial | Interchange Rate 0.20% |
Deleted Rates
Debit
| Card Type | Interchange Rate | |
|---|---|---|
| Card Type Government rate | Interchange Rate 5 cents | |
| Card Type Education rate | Interchange Rate 5 cents | |
| Card Type Service Station rate | Interchange Rate 5 cents | |
| Card Type Supermarket rate | Interchange Rate 5 cents | |
| Card Type Transit rate | Interchange Rate 5 cents | |
| Card Type Insurance rate | Interchange Rate 5 cents | |
| Card Type Electronic rate | Interchange Rate 5 cents | |
| Card Type Standard rate | Interchange Rate 0.20% | |
| Card Type Premium rate | Interchange Rate 15 cents | |
| Card Type Business rate | Interchange Rate 0.20% | |
| Card Type Corporate rate | Interchange Rate 0.20% |
Prepaid
| Card Type | Interchange Rate | |
|---|---|---|
| Card Type Government rate | Interchange Rate 5 cents | |
| Card Type Education rate | Interchange Rate 5 cents | |
| Card Type Service Station rate | Interchange Rate 5 cents | |
| Card Type Supermarket rate | Interchange Rate 5 cents | |
| Card Type Transit rate | Interchange Rate 5 cents | |
| Card Type Insurance rate | Interchange Rate 5 cents | |
| Card Type Electronic rate | Interchange Rate 8 cents | |
| Card Type Standard rate | Interchange Rate 0.20% | |
| Card Type Premium rate | Interchange Rate 0.20% | |
| Card Type Business rate | Interchange Rate 0.20% | |
| Card Type Corporate rate | Interchange Rate 0.20% |
Amended Rates
Credit
| Card Type | Interchange Rate | |
|---|---|---|
| Card Type Super Premium (Visa Rewards) | Interchange Rate 0.60% |
March 2020 - What's Changing?
Mastercard is reducing the rate on two credit card categories. These changes will affect interchange-plus merchants only. The change comes into effect on 1 March 2020.
Consumer Elite – 0.78% reducing to 0.77%
Consumer Super Premium – 0.78% reducing to 0.77%
WHAT DOES THIS MEAN FOR YOU?
The changes in the interchange rate structure may impact the cost of accepting payments for interchange-plus pricing merchants.
WHAT DO YOU NEED TO DO?
You don’t need to do anything. The interchange fee will be automatically applied to both Visa and Mastercard transactions after the implementation date (22 February 2020 and 1 March 2020) and will be reflected in your February statement.
HOW WILL THIS AFFECT YOUR COST OF ACCEPTANCE?
Depending on the card mix your business accepts, you could see an impact to your cost of acceptance.
The new interchange rates will be applied to your merchant statements and will show your cost of acceptance based on the new rates.
WHERE CAN YOU FIND OUT MORE ABOUT INTERCHANGE FEES?
VISA and Mastercard are publishing interchange fees and information on the following dates:
- Visa - 22 February 2020
- Mastercard - 1 March 2020
These rates can be found at the Visa interchange on Domestic Transactions in Australia and Mastercard interchange page.
WANT TO KNOW MORE?
Visit our interchange categories definitions page for more information.
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