The overall impact of these fee changes varies based on the card mix and vertical. October’s fee changes span all verticals with the largest impact being to e-Commerce and Card-Not-Present merchants.

The biggest fee increases to merchants are related to network assessments.  The main driver behind this increase is Visa’s new Digital Commerce Service fee.  This fee is 0.0075% and impacts ALL of Visa’s Card-Not-Present volume.

Many of the upcoming fee increases are related to Visa’s Infinite credit cards.  Fortunately, the increased costs for these cards are estimated to have minimal impact to merchants as these cards generally have less than 5% penetration .

There are slight pricing changes to debit (Signature Debit, PINless Debit, and PIN debit) but not material.  The largest impact for debit is the increase in Bank Identification Network (BIN) eligibility for card not present (CNP) issuers.  Improvement in BIN eligibility provides merchants more options to route CNP debit volume to lower cost networks now that Visa/MC (Interlink/Maestro) are in the PINless debit mix.

Like death and taxes if one thing is certain there will be more pricing changes to follow for the spring.

To best prepare and strategically plan for the upcoming 2023 and 2024 pricing changes, Email Optimized Payments at  interchange@optimizedpayments.com to receive an Excel file with all of October’s announced pricing updates.