Visa has announced similar changes to Mastercard, but with a larger scope. More specifically, the Visa changes will have significant impact on consumer card-not-present transactions, consumer refund transactions, and commercial transactions between the UK and the EEA. The announced changes will be effective by October 16th 2021.
Consumer card-not-present transactions between the UK and EEA countries are currently charged 0.20% for debit cards and 0.30% for credit cards. With the recent announcement from Visa, these transactions will be charged in line with the interregional capped rates of 1.15% for consumer debit cards and 1.50% for consumer credit cards. The interchange rates for consumer card-present transactions between the UK and EEA countries will remain unchanged. Furthermore, the interchange rates for Business cards will be set at 1.60% while Corporate and Purchasing cards are revised to 1.80%.
In contrast to Mastercard, Visa will apply the updated interchange fee rates bilaterally. This implies that both transactions with UK-issued cards at EEA merchants and EEA-issued cards at UK merchants will receive the updated interchange rates.
Since October 19th 2019, Visa has removed the returned interchange for interregional refunds in the EEA. As of October 16th 2021, interchange will no longer be returned for consumer refund transactions between the UK and the EEA both for card-present and card-not-present. This change will also be applied bilaterally. Interchange rates for commercial cards will remain unchanged.
As for Worldline customers, IC++ merchants will see the update as part of their reported scheme fees automatically. Merchants on a Blended price model will be informed in case impacts require adjusted pricing.