oth Visa and MasterCard International have approved and finalized the terms of their settlements with retailers over debit cards. As part of the settlement terms, Visa and MasterCard agreed to lower fees charged to merchants on offline signature debit card transactions. Visa's interchange rate modifications, effective August 1, 2003, are listed below. (MasterCard's new interchange rates appeared in the June 23, 2003 issue of The Green Sheet, 03:06:02.)

The following schedule applies only to domestic, signature-based consumer debit transactions for merchants included in the VisaCheck/MasterMoney class-action suit led by Wal-Mart and Sears, Roebuck and Co. Domestic transactions originating from merchants that opted out of this lawsuit and from non-U.S. issued products and commercial debit products are not eligible for these new interchange rates.

Visa U.S.A. Check Card Rates Consumer Debit Products (new)

• CPS/Retail - Check Card (Signature-based) 1.23%
• CPS/Retail - Credit 1.23%
• CPS/Retail Key-Entry 1.23%
• CPS/Retail 2 (Emerging Markets) 1.23%
• CPS/Hotel and Car Rental - Card Present 1.23%
• CPS/Hotel and Car Rental - Card Not Present 1.23%
• CPS/Card Not Present 1.23%
• CPS/e-Commerce Basic 1.23%
• CPS/e-Commerce Preferred 1.23%
• CPS/Account Funding 1.23%
• CPS/Automated Fuel Dispenser 1.23%
• CPS/Passenger Transport 1.23%
• Express Payment Service 1.23%
• Electronic Interchange Rate (EIRF) 1.23%
• Standard Interchange Rate 1.23%
• CPS/Supermarket - Check Card (Signature-based) $0.26

  Note: No change to Visa's current Check Card II interchange rates

• CPS/Retail - Tier I 1.39% + $0.10
• CPS/Retail - Tier II 1.43% + $0.10
• CPS/Retail Key-Entry 1.85% + $0.10
• CPS/Retail 2 (Emerging Markets) 1.43% + $0.05
• CPS/Hotel and Car Rental - Card Present 1.58% + $0.10
• CPS/Hotel and Car Rental - Card Not Present 1.58% + $0.10
• CPS/Card Not Present 1.85% + $0.10
• CPS/e-Commerce Basic 1.85% + $0.10
• CPS/e-Commerce Preferred 1.80% + $0.10
• CPS/Account Funding 2.14% + $0.10
• CPS/Automated Fuel Dispenser 1.50% + $0.05
• CPS/Supermarket - Tier I 1.20%
• CPS/Supermarket - Tier II 1.20% + $0.05
• CPS/Passenger Transport 1.70% + $0.05
• Express Payment Service 2.00% + $0.02
• Electronic Interchange Rate (EIRF) 2.14% + $0.10
• Standard Interchange Rate 2.49% + $0.10
• CPS/Retail - Check Card (Signature-based) 1.25% + $0.10
• CPS/Supermarket - Check Card (Signature-based) $0.40

• Signature Standard 2.63% + $0.10
• Signature Electronic 2.14% + $0.10

Commercial Products

• Standard Interchange Rate 2.63% + $0.10
• Electronic Interchange Rate 2.14% + $0.10
• GSA Purchasing Card Large Transaction 0.95% + $35
• Purchasing Card Large Ticket 0.95% + $35