U.S. Consumer Credit Interchange Update
16 March 2021
Digital payments have empowered businesses large and small to continue serving their customers since the start of the pandemic. From the ability to tap a card or phone to avoid handling cash, to enabling the exponential shift to commerce online through ecommerce and new business models such as curbside pickup and delivery, Visa is proud of the role we have played in helping keep American businesses open during this extraordinary time. We believe the steps we have taken and are taking today will further support the recovery and will benefit businesses and consumers alike.
Recognizing U.S. businesses are still facing many challenges posed by the COVID-19 pandemic, Visa has decided to significantly modify its planned April 2021 business release to delay the implementation of a number of interchange rate changes.
Earlier during the pandemic, Visa made changes to manage interchange, including an interchange reduction for supermarkets and grocery stores early last summer and deferral of any interchange changes for consumer card present retailer transactions. Now, as part of this delay, Visa is also postponing adjustments to rates applying to the ecommerce / card not present (CNP) channel until April 2022. The combined impact of Visa’s actions to support businesses and consumers has led to an overall decrease in interchange rates during the pandemic. Visa is committed to maintaining stability in our payments system and will not make any future interchange rate changes in the U.S. for another year while the economy recovers.
Managing a dynamic payment network requires constant evaluation of our rate structure and making adjustments in the normal course of business to ensure we incentivize merchants to accept Visa payments, consumers to use our products and financial institutions to serve their customers. We will continue to be thoughtful that any future adjustments accurately reflect the state of the economy, the value of payment transactions and ensure economics are balanced and competitive for all parties.
Merchants should consult with their acquirer to understand specific impacts of these changes.