Twice a year the card brands, i.e., Visa, Mastercard, American Express and Discover, typically announce changes to their interchange structure and fees. Interchange is the fee paid by the business owner to the cardholder’s bank for accepting and processing the transaction.
The most significant set of changes in more than a decade was set to take effect in April 2020, but most were postponed due to the effects of COVID-19. While some changes were postponed until 2021, the following changes for Visa and Discover take effect on July 17, 2020.
Here’s an overview of what’s changing.
Visa
Visa is eliminating the Electronic Interchange Reimbursement Fee (EIRF) and Standard interchange programs and rates on Consumer Credit transactions and the Standard Program fee on Business Credit, Business Debit, Commercial Credit, and Commercial Prepaid transactions. The program fees will be replaced by the new Non-Qualified Fee program and associated rates.
| Eliminated Program & Old Rate | New Program & New Rate |
| Consumer EIRF: 2.30% + $0.10 | Non-Qualified: 2.70% + $0.10 |
| Consumer Standard: 2.70% + $0.10 | Non-Qualified: 2.70% + $0.10 |
| Signature Preferred Standard: 2.95% + $0.10 | Non-Qualified: 2.70% + $0.10 |
| Business Card – Standard Debit: 2.95% + $0.10 | Non-Qualified Business Debit: 2.95% + $0.10 |
| Commercial Prepaid Standard: 2.95% + $0.10 | Non-Qualified Commercial Prepaid: 2.95% + $0.10 |
| Corporate Card – Standard: 2.95% + $0.10 | Non-Qualified Corporate Credit: 2.95% + $0.10 |
| Corporate Card – Standard w/Data: 2.95% + $0.10 | Non-Qualified Corporate w/Data: 2.95% + $0.10 |
| Purchasing Card – Standard: 2.95% + $0.10 | Non-Qualified Purchasing Credit: 2.95% + $0.10 |
| Purchasing Card – Standard w/Data: 2.95% + $0.10 | Non-Qualified Purchasing w/Data: 2.95% + $0.10 |
| Small Business Tier 1 – Standard: 2.95% + $0.20 | Non-Qualified Business Credit: 2.95% + $0.20 |
| Small Business Tier 2 – Standard: 2.95% + $0.20 | Non-Qualified Business Credit: 2.95% + $0.20 |
| Small Business Tier 3 – Standard: 2.95% + $0.20 | Non-Qualified Business Credit: 2.95% + $0.20 |
| Small Business Tier 4 – Standard: 2.95% + $0.25 | Non-Qualified Business Credit: 2.95% + $0.20 |
Note: CPS-qualified Visa Signature transactions at travel service merchants, most notably restaurants, will continue to receive a rate of 2.30% & $0.10 per item, but they will no longer be listed as “EIRF Credit” – rather they will be listed as “Visa Signature Travel.”
Visa is changing the interchange rates and per-item fees, and eliminating CPS/Small Ticket eligibility, for consumer Credit transactions at Supermarkets.
| Former Name & Former Rate | New Name & New Rate |
| CPS/Supermarket Credit: 1.22% + $0.05 | Traditional Supermarket: 1.50% + $0.07 |
| CPS/Small Ticket Credit: 1.65% + $0.04 | Traditional Supermarket: 1.50% + $0.07 |
Traditional Rewards Cards
| Former Name & Former Rate | New Name & New Rate |
| CPS/Rewards 1: 1.65% + $0.10 | Rewards Supermarket: 1.50% + $0.07 |
| CPS/Small Ticket Credit: 1.65% + $0.04 | Rewards Supermarket: 1.50% + $0.07 |
Signature Cards
| Former Name & Former Rate | New Name & New Rate |
| CPS/Rewards 1: 1.65% + $0.10 | Signature Supermarket: 1.65% + $0.07 |
| CPS/Small Ticket Credit: 1.65% + $0.04 | Signature Supermarket: 1.65% + $0.07 |
Signature Preferred Cards
| Former Name & Former Rate | New Name & New Rate |
| Signature Preferred Retail: 2.10% + $0.10 | Signature Preferred Supermarket: 2.00% + $0.07 |
| Infinite Retail: 2.10% + $0.10 | Infinite Supermarket: 2.00% + $0.07 |
Visa is eliminating the Business to Business interchange rates for Small Business products. Transactions currently qualifying for Business- Business to Business interchange rates will begin qualifying for “Business Product 2” (formerly Business Retail) and “Business Product 1” (formerly Business Card Not Present). In addition, Business Credit transactions at Travel Service merchants will no longer be listed as “Business Electronic”; rather, they will be listed as “Business Travel.”
| Visa Business Credit | Tier 1 | Tier 2 | Tier 3 | Tier 4 | Tier 5 |
| Business B2B | 2.10% + $0.10 | 2.25% + $0.10 | 2.40% + $0.10 | 2.50% + $0.10 | N/A |
| Business Product 2 (Retail) | 2.20% + $0.10 | 2.30% + $0.10 | 2.40% + $0.10 | 2.50% + $0.10 | 2.50% + $0.10 |
| Business Product 1 (Card Not Present) | 2.25% + $0.10 | 2.45% + $0.15 | 2.60% + $0.20 | 2.70% + $0.20 | 2.70% + $0.20 |
| Business Electronic | 2.40% + $0.10 | 2.75% + $0.15 | 2.85% + $0.20 | 2.95% + $0.20 | N/A |
| Business Travel | 2.40% + $0.10 | 2.75% + $0.15 | 2.85% + $0.20 | 2.95% + $0.20 | 2.95% + $0.20 |
Discover
Discover is introducing a new Micro Ticket interchange program and rate on consumer credit, debit and prepaid cards for select MCCs. The transactions amount must be $5 or under to be eligible for this program.
| New Interchange Program | New Rate |
| Micro Ticket Core | 1.95% |
| Micro Ticket Rewards | 1.95% |
| Micro Ticket Premium | 1.97% |
| Micro Ticket Premium Plus | 2.05% + $0.05 |
| Micro Ticket Debit | 1.80% |
| Micro Ticket Prepaid | 1.80% |
Eligible MCCs
4111 – Local and Suburban Commuter Passenger Transportation, Including Ferries
4112 – Passenger Railways
4131 – Bus Lines
4784 – Tolls and Bridge Fees
5499 – Miscellaneous Food Stores – Convenience Stores and Specialty Markets
5812 – Eating Places and Restaurants
5814 – Fast Food Restaurants
5994 – News Dealers and Newsstands
7211 – Laundries – Family and Commercial
7216 – Dry Cleaners
7338 – Quick Copy, Reproduction, and Blueprinting Services
7523 – Parking Lots, Parking Meters and Garages
7542 – Car Washes
7832 – Motion Picture Theaters
7841 – DVD/Video Tape Rental Stores
