Signature Preferred Retail - Visa Interchange Categories (2024)

FAQs

What is an interchange category? ›

Often shortened from “interchange reimbursem*nt fees,” interchange refers to a set of categories that are used to determine the rates for individual card transactions. Every category has requirements for eligibility and a rate associated. Those rates change at the card brands' discretion, typically twice a year.

Level III Interchange Rates

As of 2023, Visa sets its level III rate for qualifying commercial cards at 1.90% + 10 cents per transaction. Mastercard splits data rate III-eligible cards into more categories than Visa. Data rate III cards range from 1.75% + 10 cents per transaction to 2.06% + 10 cents.

EIRF Debit

Interchange rate: 1.75% + 20 cents per transaction. A Visa debit card that didn't hit target debit interchange but meets the following criteria will typically qualify: Transaction settled within 2 days of authorization. Card present transaction or, if keyed, signature obtained.

Visa is also expanding their small merchant interchange programs and rate range from 0%-2.7%. Fees on consumer infinite card products will increase an average of 0.13%. Finally, While international merchants will have some of their older fees eliminated, they will see program rates increase by an average of 0.01%.

System and Service Interchanges

Transportation officials broadly classify interchanges based on their functionality. A system interchange carries traffic from one freeway to another via a network of ramps and connectors. A service interchange connects a freeway with local surface streets or arterials.

Final answer: The four types of interstate interchanges are diamond, cloverleaf, trumpet, and stack interchanges.

A level 3 transaction is the highest data level and includes the maximum amount of information about the transaction. In addition to all of the data fields that make up level 1 and level 2 transactions, level 3 transactions require the following data fields: Ship-from ZIP/postal code. Ship-to/destination ZIP code.

Visa Level 3 Data

Visa requires that you submit an Attestation of Compliance (AOC) form and a Self-Assessment Questionnaire (SAQ) annually, as well as a quarterly network scan by an Approved Scan Vendor (ASV). Visa has lower interchange rates for Level 3 data.

Interchange Rate

These fees, which merchants pay to process card transactions, average around 1.6% to 2.5% for Visa and Mastercard.

Typically, this charge is 2% – 3%. By negotiating an exclusivity deal with Visa, though, Costco was able to drastically lower its interchange fees to below 0.5% per transaction. With such low credit card fees, Costco is able to keep its prices low.

How can I lower my interchange fees? ›

For the lowest interchange rates, settle your transactions every day. For most U.S. cards and transactions, the capture (clearing call) must happen within one day of the authorization to qualify for the lowest interchange rates. The longer you wait, the higher the rates.

Third: (F3) Married Sons and Daughters of U.S. Citizens: 23,400, plus any numbers not required by first and second preferences. Fourth: (F4) Brothers and Sisters of Adult U.S. Citizens: 65,000, plus any numbers not required by first three preferences.

An interchange is a road junction where traffic can move between roads that do not intersect. The roads are connected by ramps, and if they cross, the crossing is grade-separated. They are most commonly used where one or more roads is a controlled-access highway.

Definition: Interchange fees are transaction fees that the merchant's bank account must pay whenever a customer uses a credit/debit card to make a purchase from their store. The fees are paid to the card-issuing bank to cover handling costs, fraud and bad debt costs and the risk involved in approving the payment.

What Are Interchange Rates? Interchange rates are fees that merchants have to pay with credit card and debit card transactions. The fees are charged by payment processing companies, such as Visa or Mastercard and are usually a small percentage of the total.

The exchange of EDI documents is typically between two different organizations, referred to as business partners or trading partners. Example: Company A may buy goods from Company B. Company A sends Purchase Orders to Company B, which sends Invoices and Shipment Notices to Company A.