Payments processing company Visa Inc. is coming up with changes to the rates that merchants will pay to accept its cards, according to a news report from Bloomberg.
The changes contemplated will be the biggest in a decade, according to the Feb. 4 report, which Bloomberg says is based on a document sent to banks that has been seen by the news service. Responding to a query asking for comment, a spokesperson for Visa said that the company did not have any further comment at this time.
Changes in so-called “swipe fees” mean consumers could pay more for using their credit cards if merchants pass along fee hikes to them. A lot of card issuers also share swipe fees with customers through rewards programs, as an incentive to get consumers to use their cards.
Visa delays implementation because of pandemic
Visa had planned to implement the changes in two stages, in April and October. However, the company has delayed the rollout of the changes to April 2021, taking into account the impact of the coronavirus pandemic, according to a Visa update.
“The exception is the planned interchange reductions in the supermarket segment will go forward. We believe this is the right decision to ensure the long-term stability of the digital payments ecosystem,” according to the company.
The company has also extended its deadline for gas station owners to upgrade their payment systems to accept EMV cards and contactless cards to April 2021, taking into account the staffing and supply chain issues the pandemic has brought about.
The changes could impact various categories of retailers differently, with either higher or lower swipe fees…Read more>>