Upcoming Changes From VISA
Earlier this year Visa postponed the largest overhaul of its interchange structure in a decade.
Most of the changes we expected in April will take effect CPD October 17, 2020.
Here is a quick summary of the October changes:
Authorization Response Messages
Starting CPD October 16, 2020, the Field 44.1 (Response Source/Reason Code) of authorization
response message will be replaced with a “V”. The “V” indicates that the transaction was authorized online.
New Consumer Credit Merchant Segment Incentive
Visa is eliminating its “Retail 2” Program which means it will be introducing new interchange rates
for Insurance, Services, Education, Healthcare, Real Estate and Advertising.
The new segment will have minimum ticket size qualification of $100 for services.
The ticket size qualification for Education, Healthcare, and Real Estate transactions will be $500.
Transactions below the ticket size qualification are eligible for the Product 1 and Product 2 interchange rates
are listed below:
| Insurance – All Transaction Sizes | ||
| Product | New Interchange Program | New Interchange Rate |
| Visa Traditional | Insurance | 1.43% + $0.05 |
| Visa Traditional Rewards | ||
| Visa Signature1 | ||
| Visa Signature Preferred2 | 2.25% + $0.10 | |
| 1Includes Visa Infinite (not spend qualified) | ||
| 2Includes Visa Infinite (spend qualified) |
| Services – Transactions > / = $100 | ||
| Product | New Interchange Program | New Interchange Rate |
| Visa Traditional | Services | 1.55% + $0.10 |
| Visa Traditional Rewards | 1.70% +$0.10 | |
| Visa Signature1 | 1.85% + $0.10 | |
| Visa Signature Preferred2 | 2.30% + $0.10 | |
| 1Includes Visa Infinite (not spend qualified) | ||
| 2Includes Visa Infinite (spend qualified) |
| Education – Transactions > / = $500 | ||
| Product | New Interchange Program | New Interchange Rate |
| Visa Traditional | Education | 1.43% + $0.05 |
| Visa Traditional Rewards | ||
| Visa Signature1 | ||
| Visa Signature Preferred2 | 2.15% + $0.10 | |
| 1Includes Visa Infinite (not spend qualified) | ||
| 2Includes Visa Infinite (spend qualified) |
| Healthcare – Transactions > / = $500 | ||
| Product | New Interchange Program | New Interchange Rate |
| Visa Traditional | Healthcare | 1.43% + $0.05 |
| Visa Traditional Rewards | ||
| Visa Signature1 | ||
| Visa Signature Preferred2 | 2.30% + $0.10 | |
| 1Includes Visa Infinite (not spend qualified) | ||
| 2Includes Visa Infinite (spend qualified) |
| Real Estate – Transactions > / = $500 | ||
| Product | New Interchange Program | New Interchange Rate |
| Visa Traditional | Real Estate | 1.43% + $0.05 |
| Visa Traditional Rewards | ||
| Visa Signature1 | ||
| Visa Signature Preferred2 | 2.15% + $0.10 | |
| 1Includes Visa Infinite (not spend qualified) | ||
| 2Includes Visa Infinite (spend qualified) |
| Advertising – All Transactions | ||
| Product | New Interchange Program | New Interchange Rate |
| Visa Traditional | Advertising | 1.55% + $0.10 |
| Visa Traditional Rewards | 1.70% +$0.10 | |
| Visa Signature1 | 1.75% + $0.10 | |
| Visa Signature Preferred2 | 2.30% + $0.10 | |
| 1Includes Visa Infinite (not spend qualified) | ||
| 2Includes Visa Infinite (spend qualified) |
Visa is also eliminating the Business to Business interchange rate on Visa Signature Preferred and Infinite (Spend qualified)
Consumer Card-Not-Present (CNP) Rate Changes
In addition to interchange rates changes, detailed in the chart below, Visa will rename CNP CPS-qualified transactions as
Product -1. The interchange rates below affect the segment-based transactions listed earlier. Effective with this change,
Visa is replacing all CPS qualified e-commerce and CNP interchange rates with those in the table.
| Product | Interchange Rate Name | Existing Interchange Rate | New Interchange Rate Names | New Interchange Rate |
| Visa Traditional | Retail Key Entry, CNP,
e-commerce Basic, e-Commerce Preferred Retail |
1.80% + $0.10 | Visa Traditional Product 1 | 1.89% + $0.10 |
| Account Funding | 2.14% + $0.10 | |||
| Visa Traditional Rewards | Rewards 2 | 1.95% + $0.10 | Visa Traditional Rewards Product 1 | 2.04% + $0.10 |
| Account Funding | 2.14% + $0.10 | |||
| Visa Signature 1 | Rewards 2 | 1.95% + $0.10 | Visa Signature Product 1 | 2.05% + $0.10 |
| Accounting Funding | 2.14% + $0.10 | |||
| Visa Signature Preferred2 | CNP | 2.40% + $0.10 | Visa Signature Preferred Product 1 | 2.50% + $0.10 |
CPS-Qualified Recurring Program
Effective CPD October 17, 2020 Visa is expanding the CPS/Recurring program to Visa Signature Preferred transactions with
an interchange of 2.20% +$0.05. The CPS/Recurring interchange rate remains the same for other Visa consumer products.
Consumer Card Present (CP) Interchange Rate Changes
Starting CPD October 17, CPS-qualified card present transactions will be known as “Product 2” with the following Interchange rates:
| Product | Interchange Rate Name | Existing Interchange Rate | New Interchange Rate Name | New Interchange Rate |
| Visa Traditional | Retail | 1.51% + $0.10 | Visa Traditional Product 2 | 1.55% + $0.10 |
| Visa Traditional Rewards | Rewards 1 | 1.65% + $0.10 | Visa Traditional Rewards Product 2 | 1.65% + $0.10 |
| Visa Signature1 | Visa Signature Rewards Product 2 | 1.65% + $0.10 | ||
| Visa Signature Preferred2 | Retail | 2.10% + $0.10 | Visa Signature Preferred Product 2 | 2.20% + $0.10 |
Changes to Retail Credit Performance Threshold Interchange Rates
Effective CPD October 17, 2020, Visa is creating new retail credit tier interchange rates for Visa Signature and
Visa Signature Preferred transactions. Current performance threshold standards will remain unchanged with
adjustments coming after a year-end review. Tier Interchange rates for Visa Traditional and Visa Traditional
Rewards will change as outlined below.
| Product | Interchange Rate Name | Existing Interchange Rate | New Interchange Rate Name | New Interchange Rate |
| Visa Traditional | Retail Tier 1 | 1.43% + $0.10 | Retail Tier 1 | 1.27%+ $0.10 |
| Visa Traditional Rewards | ||||
| Visa Signature1 | Rewards 1 | 1.65% + $0.10 | 1.35% + $0.10 | |
| Visa Signature Preferred2 | Retail | 2.10% + $0.10 | 1.97% + $0.10 | |
| Visa Traditional | Retail Tier 2 | 1.47% + $0.10 | Retail Tier 2 | 1.47% + $0.10 |
| Visa Traditional Rewards | ||||
| Visa Signature1 | Rewards 1 | 1.65% + $0.10 | 1.58% + $0.10 | |
| Visa Signature Preferred2 | Retail | 2.10% + $0.10 | 2.10% + $0.10 | |
| Visa Traditional | Retail Tier 3 | 1.51% + $0.10 | Retail Tier 3 | 1.55% + $0.10 |
| Visa Traditional Rewards | ||||
| Visa Signature1 | Rewards 1 | 1.65% + $0.10 | 1.65% + $0.10 | |
| Visa Signature Preferred2 | Retail | 2.10% + $0.10 | 2.15% + $0.10 | |
| 1Includes Visa Infinite (not spend qualified) | ||||
| 2Includes Visa Infinite (spend qualified) |
Small Ticket Qualifying Merchant Categories Refined, Small Ticket Interchange Rate Created for Visa Signature Preferred
As merchant segments continue to shift, Visa is updating its list of Small Ticket eligible merchant categories effective
CPD October 17, 2020. Visa will also extend the Small Ticket program qualification to Visa Signature transactions.
Only transactions from the 16 MCCs below will be eligible for Small Ticket exchange rates.
| MCCs Qualified for Small Ticket Interchange Rate CPD October 17, 2020 | |
| MCC 4111- Local and Suburban Commuter Passenger Transportation including Ferries | MCC 7211- Laundries- Family & Commercial |
| MCC 4112 – Passenger Railways | MCC 7216- Dry Cleaners |
| MCC 4131- Bus Lines | MCC 7523- Parking lots, Parking Meters & Garages |
| MCC 5310-Discount Stores | MCC 7542-Car Washes |
| MCC 5331- Variety Stores | MCC 7800- U.S. Region Government Owned Lotteries |
| MCC 5399- Misc. General Merchandise | MCC 7832- Motion Picture Theatres |
| MCC 5499-Misc. Food Stores – Convenience Stores & Specialty Markets | MCC 7994-Video Game Arcades/Establishments |
| MCC 5522-Electric Vehicle Charging | MCC 7995- Betting including Lottery Tickets, Casino Gambling Chips, Off Track Betting and Wagers at Racetracks |
| Product | Interchange Program | Existing Interchange Rate | New Interchange Rate Name | New Interchange Rate |
| Visa Traditional | Small Ticket | 1.65% + $0.04 | Small Ticket | 1.90% (min $0.04) |
| Visa Traditional Rewards | ||||
| Visa Signature1 | 1.65% + $0.04 | 2.20% (min $0.04) | ||
| Visa Signature Preferred2 | Retail | 2.10% + $0.10 | 2.20% (min $0.04) | |
| 1Includes Visa Infinite (not spend qualified) | ||||
| 2Includes Visa Infinite (spend qualified) |
Service stations and government transactions in the merchant categories listed below will remain eligible for the
Small Ticket program at their existing interchange rates of 1.65%+$0.04 for Visa Traditional, Visa Traditional Rewards,
and Visa Signature. The small ticket interchange rate for the MCCs below will not be available on Visa Signature Preferred
or Infinite (spend qualified) products.
Qualifying MCCs include:
MCC 5411 – Service Stations (with or without Ancillary Services)
MCC 9211—Court Costs, Including Alimony and Child Support
MCC 9222—Fines
MCC 9311—Tax Payments
MCC 9399—Government Services (Not Elsewhere Classified)
All other merchant categories will no longer qualify for the Small Ticket interchange rate and will default to the
Product interchange rates previously described above, regardless of ticket size.
