Visa USA announced that it will update the interchange rates available on its website (www.visa.com/merchants/operations/interchange_rates) to reflect the Visa rates and rate structure in the U.S. marketplace effective April 14, 2007. This information has always been provided by Visa to its issuers and acquirers and is now available online to all interested parties. Visa USA’s system-wide effective interchange rate is expected to be 1.77 percent.
“Visa constantly evaluates the marketplace to determine interchange rates. A number of factors are assessed when reviewing interchange, including the specific product, the value provided to the merchant, the type of merchant business, how a transaction is processed, the risk associated with a transaction, the rates associated with competitive and substitute payment products, and other elements,” said Rhonda Bentz, Vice President, Visa USA.
Interchange rates are determined in an extremely competitive marketplace, and are the rates that Visa sets on the exchange of transactions between issuers and acquirers. Merchants negotiate their cost of acceptance directly with their financial institution and pay what is known as “merchant discount.” “Revenue from interchange helps to sustain the many stakeholder services provided by Visa’s member financial institutions,” Bentz said.
Visa USA is a leading payment brand and the nation’s largest payment system, enabling banks to provide their consumers and business customers with a wide variety of payment alternatives tailored to meet their evolving needs. Visa USA is committed to increasing the choice, convenience, acceptance and security of Visa payments for all stakeholders in the payment system Ã¢Â members, cardholders and merchants. Through its 13,382 member financial institutions, more than 510 million Visa-branded cards have been issued to cardholders in the United States.
Visa products currently generate more than $4 trillion in sales volume worldwide. Visa enjoys unsurpassed acceptance around the world. In addition, Visa/Plus is one of the world’s largest global ATM networks, offering cash access in local currency in over 170 countries. For more information, visit www.corporate.visa.com.