Card Brand Updates

Visa has instructed issuers to improve the information content of authorization decline reason codes. This will help merchants to make better decisions when attempting to re-try a transaction that they believe should be approved. However, a sub-set of decline codes indicates the card is blocked for use or never existed and means there is no circumstance in which the issuer will grant an approval—for example, in the case of a lost or stolen card. Effective 1 April 2021, acquirers and merchants must not retry an authorization that receives a decline response from this category. Effective 1 April 2022, attempts to authorize a transaction that has previously received a Category 1 decline will be subject to a per-transaction fee.

Category 1 decline codes that indicate the issuer will never approve (do not re-attempt):

• 03 (Invalid merchant)
• 04 (Pickup card)
• 07 (Pickup card, special conditions)
• 12 (Invalid transaction)
• 15 (No such issuer)
• 41 (Pickup card [lost card))
• 43 (Pickup card [stolen card))
• 57 (Transaction not permitted to cardholder)
• 62 (Restricted card)
• 78 (No account)
• 93 (Transaction cannot be completed)
• R0 (Stop payment order)
• R1 (Revocation of authorization order)
• R3 (Revocation of all authorization)

Additional details regarding fees, as well as information about other categories of decline reason codes, will be provided in a future communication.

Visa Corporate Prepaid cards will no longer be eligible for a lower rate on CPS-qualified card present transactions. However, Business Prepaid and Purchasing Prepaid cards will continue to be eligible for the lower rate. Descriptors will change as follows:

Consumer credit interchange qualification, rates, and descriptors will be change significantly. First, the following MCC groupings and related interchange fees and qualification logic will be eliminated:

• Business-to-Business (Visa Signature Preferred and Visa Infinite (Spend-qualified) transactions)
• Select Developing Market
• Travel Service

In addition, the following programs will be eliminated:

• CPS/Retail Credit
• CPS/Retail Keyed Credit
• CPS/Restaurant Credit
• CPS/Service Station Credit
• CPS/Retail 2 Credit
• CPS/Rewards 1
• CPS/Rewards 2
• CPS/Card Not Present Credit
• CPS/E-Commerce Basic Credit
• CPS/E-Commerce Preferred Credit
• CPS/Hotel&Car Rental Card Not Present Credit
• CPS/Hotel&Car Rental Card Present Credit
• CPS/Hotel&Car Rental E-Commerce Preferred Credit
• Signature Preferred Electronic
• Signature Preferred Card Not Present
• Signature Preferred Retail
• Signature Preferred Business-to-Business
• Infinite Electronic
• Infinite Card Not Present
• Infinite Retail
• Infinite Business-to-Business

The existing CPS/Small Ticket rates will be limited to service station and certain government MCCs:

• 5541 (Service stations (with or without ancillary services))
• 9211 (Court costs, including alimony and child support)
• 9222 (Fines)
• 9311 (Tax payments)
• 9399 (Government services (not elsewhere classified))

The former “CPS/Small Ticket Credit” descriptor will be replaced with “Service Station and Government Small Ticket”. As is the case today, Signature Preferred and Infinite (Spend-qualified) cards will not be eligible for this rate, though they remain eligible for the CPS/Government Credit rate at MCCs 9211, 9222, 9311, and 9399.

A new small ticket rate will be introduced for a select list of MCCs, subject to the same qualifying criteria as CPS/Small Ticket Credit, and available to all consumer credit products, including Signature Preferred and Infinite (Spend-qualified).

MCCs Eligible for new Small Ticket Program:

• 4111 (Local and suburban commuter passenger transportation, including ferries)
• 4112 (Passenger railways)
• 4131 (Bus lines)
• 5310 (Discount stores)
• 5331 (Variety stores)
• 5399 (Miscellaneous general merchandise)
• 5499 (Miscellaneous food stores – Convenience stores and specialty markets)
• 5552 (Electric vehicle charging)
• 7211 (Laundries – family and commercial)
• 7216 (Dry cleaners)
• 7523 (Parking lots, parking meters and garages)
• 7542 (Car washes)
• 7832 (Motion picture theaters)
• 7994 (Video game arcades/establishments)
  
  

New merchant segment interchange programs will be introduced for consumer credit purchase transactions that meet existing CPS qualification requirements.

Segment: Service Stations
MCC: 5541
Minimum Ticket Amount: None

Segment: Restaurant
MCC: 5812 (Restaurants), 5814 (Fast Food)
Minimum Ticket Amount: None

Segment: Taxi
MCC: 4121 (Taxicabs and Limousines)
Minimum Ticket Amount: None

Segment: Real Estate
MCC: 6513
Minimum Ticket Amount: $500

Segment: Education
MCC: 8211, 8220, 8241, 8244, 8249, 8299, 8351
Minimum Ticket Amount: $500

Segment: Healthcare
MCC: 0742, 4119, 7277, 8011, 8021, 8031, 8041, 8042, 8043, 8049, 8050, 8062, 8071, 8099
Minimum Ticket Amount: $500

Segment: Advertising
MCC: 7311
Minimum Ticket Amount: None

Segment: Insurance
MCC: 5960, 6300
Minimum Ticket Amount: None

Segment: Services
MCC: 0763, 0780, 1520, 1711, 1731, 1740, 1750, 1761, 1771, 1799, 2741, 2791, 2842, 4214, 4215, 4225, 4816, 4821, 5074, 5552, 5697, 5969, 5975, 5976, 5983, 5996, 5997, 7210, 7211, 7216, 7217, 7221, 7230, 7251, 7261, 7273, 7276, 7278, 7297, 7298, 7299, 7321, 7333, 7338, 7339, 7342, 7349, 7361, 7372, 7375, 7379, 7392, 7393, 7395, 7399, 7523, 7531, 7534, 7535, 7538, 7542, 7549, 7622, 7623, 7629, 7631, 7641, 7692, 7699, 8111, 8641, 8931, 8999
Minimum Ticket Amount: $100

Segment: Travel
MCC: 3000-3999, 4112, 4411, 4511, 4722, 7011, 7512, 7513
Minimum Ticket Amount: None

Transactions on Signature Preferred and Infinite (Spend-qualified) cards will become eligible for the CPS/Recurring Bill Payment program at Telecommunications and Cable service providers (MCCs 4814, 4899).

Transactions that are CPS-qualfied, but are not eligible for the new segment-based rates or other industry-specific programs, will be eligible for either “Product 1” (card-not-present) or “Product 2” (card-present) rates:

NOTE: Transactions that qualify for the “CPS/Key Entered” program will no longer be considered “Product 1” (card present); instead, they will be treated as “Product 1” (card not present). This is a change from current treatment.

Existing Consumer and Business Credit rates will change:

NOTE: Non-Travel Service transactions on Commercial cards that qualify for CPS/Retail Key Entry will no longer be eligible for the Business Tier Product 2 or Corporate/Purchasing Card Present rates. Instead, they will be eligible for Business Tier Product 1 or Corporate/Purchasing Card Not Present rates.