Visa has announced more changes to debit pricing structure, which will take effect April 2012. When the Federal Government decided to get involved in price control to cap debit card fees, it was addressed by the interchange reimbursement fees. Now the cat and mouse game has begun. Now Vise has added fees under what is called “acquirer fees”. This will get passed on to the merchant but escapes the Durbin rules.
On with the details:
The new of $0.10 will be assessed in debit and prepaid card transactions that do not qualify for Custom Payment Service (CPS). The TIF is charged in addition to the applicable interchange fee.
The will be reduced from $0.0195 to $0.0155 per authorization for debit transactions. (It will remain $0.0195 per authorization for credit transactions.)
The will change from $0.035 per transaction to $0.0225 + 0.08% (8 basis points), capped at $0.035 per transaction.
The new will be assessed per merchant per month. This is the new name for the previously announced . For card present merchants, the FANF is based on the number of locations, and will be $2.00-$5.00 per location per month for most merchants. For card not present merchants and fast food restaurants, the FANF is based on sales volume, and will be $2.00-$15.00 per month for most merchants. (The fee is higher for larger merchants.)
The FANF is based on a merchant’s taxpayer identification number (TIN), just like the recently introduced 1099-K from the IRS. This places even greater importance on obtaining accurate taxpayer information for all merchants, including the legal name of the business and its TIN.