Merchant Card Services
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How does Visa set interchange?

Interchange is set in response to dynamic and highly competitive market forces and strikes the right economic balance between participants in
the payment network. Among other things, it varies by the type of merchant, cost of the sale, payment product type, processing technology the
merchant uses and region or country. For example, transactions at fuel merchants, quick service restaurants and car rental agencies each
possess unique attributes that may require different interchange categories and processing strategies. Similarly, the type of payment product
used (e.g., credit or debit) and how that product is used (e.g., face-to-face or over the Internet) affect the interchange rate and processing
requirements.

Who pays interchange?

The merchant's financial institution generally pays interchange. Merchants make a payment to their financial institution for Visa transactions,
frequently referred to as a Merchant Discount or Merchant Service fee. This is a market-based fee set by each merchant's financial institution
operating in a competitive marketplace — merchants can choose their financial institution in the same way cardholders can choose the
financial institution that issues their Visa card. Interchange is only one component of this cost of doing business.

How much is interchange?

Among other things, interchange may vary by the type of merchant, cost of the sale, payment product type, processing technology the merchant
uses and region or country. For example, transactions at fuel merchants, quick service restaurants and car rental agencies each possess
unique attributes that may require different interchange categories and processing strategies. Similarly, the type of payment product used (e.g.,
credit or debit) and how that product is used (e.g., face-to-face or over the Internet) affect the interchange rate and processing requirements.

Can merchants negotiate interchange rates?

Merchants do not pay interchange directly. They pay a Merchant Discount or Merchant Service fee that they can actively negotiate directly with
their financial institution. Interchange is a mechanism that helps manage a worldwide system made up of thousands of financial institutions,
millions of merchants and millions of consumers.

Are interchange rates regulated?

In some countries, price controls have been imposed on interchange. Such regulation has only proved to harm consumers. In Australia, where
interchange levels are regulated, merchants have increased their profits, while consumers have lost card benefits and choice. Consumers are
also paying higher prices due to the check-out fees merchants can now charge.

How much revenue does Visa gain from interchange?

Interchange is the transfer rate paid by the retailer's financial institution to the cardholder's financial institution for the vast majority of
transactions. For ATM transactions, interchange flows in the opposite direction, from the cardholder's bank to the acquiring bank. It is part of
financial institutions'
Interchange FAQ's And Rate Chart