Adapting to the New Competitive Landscape
Visa’s New Pricing Structure to Lower Merchant Acceptance Costs
The competitive landscape for electronic payments is more dynamic than ever before. That includes changes in regulation that now require every debit card to offer at least two routing options. So now competition is not just about which card the consumer picks, but which network the merchant chooses.
To win merchant business, we know we need to compete on all fronts, including costs.
That is why Visa is revamping our pricing structure to lower acceptance costs for the vast majority of U.S. merchants by lowering variable acquirer processing fees for all Visa products and across all merchant segments. We are also putting in place a new Fixed Acquirer Fee (FAF) which will apply to the acceptance of all Visa-branded products and will be assess to acquirers based on both the merchant’s size and its number of locations. This new pricing structure will meet the needs of all Visa stakeholders, starting with merchants who will realize benefits above and beyond the $8 billion they received from debit price controls. For example:
- Greater incentives to route over the Visa network
- Greater aggregate savings per transaction
- Greater savings for charitable organizations
For more details on the new pricing structure please visit our Frequently Asked Questions.
