Visa's Debit Rates Converge

Visa has announced additional changes for April 2010.  Visa will adjust the following U.S. Visa Debit Interchange reimbursement fees.  The significance here is that for many merchants the underlying Interchange costs for accepting a Visa signature debit (check card) will be the same as accepting a PIN debit transaction. 

Visa Signature Debit

Fee Program Current Fee April 2010 Fee

CPS Retail Debit 1.03% + $0.15  0.95% + $0.20

CPS Supermarket Debit 1.03% + $0.15 ($0.35 max) 0.95% + $0.20 ($0.35 max)

CPS Service Station Debit 0.70% + $0.17 ($0.95 max) 0.75% + $0.17 ($0.95 max)

CPS Automated Fuel Dispenser Debit 0.70% + $0.17 ($0.95 max) 0.75% + $0.17 ($0.95 max)

Interlink PIN Debit

Visa has announced changes in the pricing for Interlink debit transactions.

Fee Program Current Fee April 2010 Fee

Interlink Standard— IV 0.75% + $0.17  0.95% + $0.20

Interlink Supermarket—Performance Threshold IV $0.25 0.95% + $0.20 ($0.35 max)

Interlink Standard—Fuel 0.70% + $0.17 ($0.95 max) 0.75% + $0.17 ($0.95 max)

Interlink Quasi Cash 1.80% + $0.10 2.30% + $0.10

If there are no price incentives for merchants to accept PIN (and staring in July 2010 "No Signature Required” <$25 for most). what will they do?  Will merchants continue to invest in PIN pads, encryption upgrades, maintenance, etc.?  Will merchants continue to ask their customers… “credit” or “debit” at the points of sale?  

What do you think?

For more Interchange announcements visit http://www.vantagecard.com/price/interchange05.html.

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