Visa Interchange Rate Increase on Business Debit Cards in May 2022

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With effect from May 2022, there is a Visa Interchange Rate increase on VISA BUSINESS DEBIT CARDS to 1.15% on cards issued in the UK. These changes were expected 2020 and 2021 but were postponed due to the pandemic.

Visa is a scheme, which is a payment network that manages payment transactions, using both debit and credit cards to process payments. Mastercard and American Express are two more examples of schemes. Involved in the scheme process, is the cardholder, issuing bank (the cardholder’s bank), the merchant, the acquiring bank and the scheme. Visa makes its revenue through a percentage fee in the card processing rates, so an increase in rates will directly increase a merchant’s rates.

This increase follows an increase from Mastercard’s Interchange Rate. Both companies have stated the increase does not directly benefit them, but will be used to combat the increase in fraud and to fund new products.

What does this mean for you?

If you’re a merchant accepting card payments, and you process Visa Business Debit Cards, then this will affect your processing costs. As Visa increase their Interchange Rate, this is directly passed onto a merchant’s card processing rates. Therefore, if your business is accepting a high number of Visa Business Debit Cards, you will see your monthly card charges increase.

On average, Visa Business Debit Cards account for 7% of Paynetworx merchants payments, so the increase in fees is not likely to result in a large bill increase.

However, if you are a merchant accepting a large amount of Visa Business Debit Cards, such as a car rental company, you can choose not to accept Visa Business Debit Cards. This would require a switch in your payment acceptance policy.

If you are a Paynetworx merchant, you will receive an email notification explaining how this increase will affect your business.

For more information about the Visa Interchange Rate Increase, please contact our office.