Visa Price
Increase April 1999
When we announced
Interchange increases from Visa and MasterCard late in 1997, which
were to take effect in early 1998, we noted that this could be a boon
to sales. Our thinking was that many merchants had not thought about
their rate in years, and this would be an excellent opportunity for
ISOs to go in and move a customer away from their current
relationship. (Hello attrition!)
Well, if that were
true for 1998, then 1999 will be an even better year to get merchants
to switch processors. We are just starting 1999 and the interchange
increases (left) planned for April are not yet in place; therefore,
your sales opportunities from these increases are just ahead. We have
also heard that there is a chance that there could be more changes to
these rates before April. In addition to new pricing, Visa is
introducing a new on-line debit product, called the Check Card (PIN
based), with interchange of 0.55% plus $0.10
Visa Interchange
Category Increase
CPS/Retail Credit is
increasing .14%
CPS/Retail Check Card is
increasing .12% & $.04
CPS/Card Not Present (MO/TO)
is increasing .10%
EIRF is increasing
.04%
CPS/Hotel and Car Rental is
increasing .10%
CPS/Supermarket is
increasing .05%
The entire price
change is as follows:
Rate Category Current Rate
April 1999 Rate
Consumer
Products
CPS/Retail Credit 1.31%
1.45%
CPS/Retail Check Card 1.04%
+ $0.06 1.16% + $0.10
Check Card (PIN Based) 1 N/A
0.55% + $0.10
CPS/Retail 2
(Emerging Market Usage)
1.43% + $0.05 1.43% + $0.05
CPS/Hotel and Car
Rental
(Card Not Present) 1.43% +
$0.05 1.53% + $0.05
CPS/Hotel and Car
Rental
(Card Present) 1.43% + $0.05
1.53% + $0.05
CPS/Card Not Present 1.65% +
$0.05 1.75% + $0.05
CPS/Automated Fuel Dispenser
1.40% + $0.05 1.50% + $0.05
CPS Supermarket Credit 1.15%
1.20%
CPS/Supermarket Check Card
$0.36 $0.40
Check
Card-Supermarket
(PIN Based) 2 N/A
$0.25
CPS/Passenger Transport
1.65% + $0.05 1.70% + $0.05
Express Payment Service
2.00% + $0.02 2.00% + $0.02
Electronic Interchange
Rate
(EIRF) 1.81% + $0.10 1.91% +
$0.10
Standard Interchange Rate
2.09% + $0.10 2.17% + $0.10
Interlink $0.10
(Supermarket) $0.10 (Supermarket) .45% (Non-Supermarket) .45%
(Non-Suprmkt)
with $0.12 cap with $0.12
cap
Commercial
Products
GSA Purchasing
Card
Large Transaction 3 N/A
0.95%+$35.00
Electronic Interchange Rate
2.02% + $0.10 2.02% + $0.10
Standard Interchange Rate
2.22% + $0.10 2.22% + $0.10
1 Effective September
26,1998
2 Effective September 26,
1998
3 Effective October 23,
1998
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