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Visa planning major changes to swipe fees, Bloomberg reports

Wednesday 5 February 2020 15:06 CET | News

Bloomberg has reported that Visa is planning the biggest changes in a decade to the rates US merchants pay to accept its cards.

According to a Visa document outlining the changes, which was sent to banks, the company’s interchange rates will go up or down depending on the merchant and the way consumers pay for their purchases. Higher rates seem imminent for transactions on ecommerce sites, while retailers in certain services categories, such as real estate and education, will see fees decline.

While the changes amount to just a few cents on every transaction, those pennies add up, swipe fees being already a flashpoint between merchants, banks, and payment networks such as Visa and Mastercard.

Payment processors are updating their systems and readying merchants for the new rates, which will be rolled out in April and October 2020, according to the document. Bloomberg reports that Visa planned the two-part implementation as a way to give processors more time to implement the changes. Visa declined to comment on the changes proposed in the document.

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Keywords: Visa, interchange rate, merchants, ecommerce, payment processors, retailers, cards, US
Categories: Payments & Commerce | Cards
Countries: World
This article is part of category

Payments & Commerce