Credit and Debit Card Interchange Fees Assessed to Merchants in the United States August 216 Update Payments System Research Department Federal Reserve Bank of Kansas City This update includes regular and premium issuer interchange fees for different merchant categories and sizes. In 21 or after, several PIN-debit networks introduced the premium issuer fees, which are assessed on transactions where the cards belong to qualifying issuers that typically commit to a specific level of transaction volume on a given network. Fees shown in this document as assessed to merchants are from individual networks fee schedules and may not necessarily represent interchange fee revenue issuers actually earn. Some networks also offer lower interchange fees than represented in the fee schedule to some (large) merchants. Fumiko Hayashi, Senior Economist, and Sabrina Minhas, Research Associate, compiled this update. Data sources are: American Banker (various issues); ATM & Debit News (various issues); Credit Card Management (April 1999); Debit Card Directory (various years); EFT Data Book (various years); Pacificisland.publishpath.com; Vantagecard.com; Monerisusa.com; Wells Fargo; MasterCard Worldwide; and Visa Inc. The original charts appeared in Fumiko Hayashi, Richard J. Sullivan, and Stuart E. Weiner. 23. A Guide to the ATM and Debit Card Industry, Federal Reserve Bank of Kansas City; Fumiko Hayashi, 26. A Puzzle of Card Payment Pricing: Why Are Merchants Still Accepting Card Payments? Review of Network Economic, 5(1): 144-174; Fumiko Hayashi, Richard J. Sullivan, and Stuart E. Weiner, 26. A Guide to the ATM and Debit Card Industry: 26 Update, Federal Reserve Bank of Kansas City; and Fumiko Hayashi, 29. Do U.S. Consumers Really Benefit from Payment Card Rewards? Federal Reserve Bank of Kansas City Economic Review, First Quarter: 37-63.
I. Consumer credit card interchange fees 12 $4 transaction at small supermarkets 1 8 6 4 2 Visa Credit Visa Traditional Visa Signature Preferred MC Credit MC Core MC World Elite Discover Core Discover Premium Plus 12 $4 transaction at largest supermarkets 1 8 6 4 2 Visa Credit Visa Traditional Visa Signature Preferred MC Credit MC Core MC World Elite Discover Core Discover Premium Plus I-1
12 $4 transaction at small retailers 1 8 6 4 2 Visa Credit Visa Traditional Visa Signature Preferred MC Credit MC Core MC World Elite Discover Core Discover Premium Plus 12 $4 transaction at largest retailers 1 8 6 4 2 Visa Credit Visa Traditional Visa Signature Preferred MC Credit MC Core MC World Elite Discover Core Discover Premium Plus I-2
12 $4 transaction at gas stations 1 8 6 4 2 24 25 26 27 28 29 21 211 212 213 214 215 216 Visa Credit Visa Traditional Visa Signature Preferred MC Credit MC Core MC World Elite Discover Core Discover Premium Plus 35 $1 transaction at quick-service restaurants 3 25 2 15 1 5 24 25 26 27 28 29 21 211 212 213 214 215 216 Visa Credit Visa Traditional Visa Signature Preferred MC Credit MC Core* MC World Elite* Discover Core Discover Premium Plus Notes: * indicates products with volume tiered rates. The base rates are shown. I-3
II. Consumer signature debit card interchange fees 5 45 4 35 3 25 2 15 1 5 $4 transaction at small supermarkets Visa Visa Prepaid MasterCard Discover Regulated IF 5 45 4 35 3 25 2 15 1 5 $4 transaction at largest supermarkets Visa Visa Prepaid MasterCard Discover Regulated IF Note: Exempt interchange fees are shown from October 211 to 216. II-1
7 $4 transaction at small retailers 6 5 4 3 2 1 Visa Visa Prepaid MasterCard Discover Regulated IF 7 $4 transaction at largest retailers 6 5 4 3 2 1 Visa Visa Prepaid MasterCard Discover Regulated IF Note: Exempt interchange fees are shown from October 211 to 216. II-2
7 $4 transaction at gas stations 6 5 4 3 2 1 24 25 26 27 28 29 21 211 212 213 214 215 216 Visa Visa Prepaid MasterCard* Discover Regulated IF 4 $1 transaction at quick-service restaurants 35 3 25 2 15 1 5 24 25 26 27 28 29 21 211 212 213 214 215 216 Visa Visa Prepaid MasterCard* Discover Regulated IF Notes: Exempt interchange fees are shown from October 211 to 216. * indicates networks with volume tiered rates. The base rates are shown. II-3
III. Consumer PIN debit card interchange fees 5 $4 transaction at small supermarkets 4 3 2 1-1 Star Interlink Interlink Prepaid NYCE Pulse Accel/Exchange Shazam Jeanie Networks AFFN Maestro Alaska option CU24 Regulated IF 7 $4 transaction at small retailers 6 5 4 3 2 1-1 Star Interlink Interlink Prepaid NYCE Pulse Accel/Exchange Shazam Jeanie Networks AFFN Maestro Alaska option CU24 Regulated IF Note: Exempt interchange fees are shown from October 211 to 216. III-1
7 $4 transaction at gas stations 6 5 4 3 2 1 24 25 26 27 28 29 21 211 212 213 214 215 216 Star* Interlink Interlink Prepaid NYCE* Pulse* Accel/Exchange* Shazam* Jeanie Networks AFFN Maestro* Alaska option CU24* Regulated IF 4 $1 transaction at quick-service restaurants 35 3 25 2 15 1 5 24 25 26 27 28 29 21 211 212 213 214 215 216 Star Interlink Interlink Prepaid NYCE Pulse Accel/Exchange Shazam* Jeanie Networks AFFN Maestro* Alaska option CU24 Regulated IF Notes: Exempt interchange fees are shown from October 211 to 216. * indicates networks with volume tiered rates. The base rates are shown III-2
5 $4 transaction at small supermarkets (premium issuer rate) 4 3 2 1-1 Star+ Interlink Interlink Prepaid NYCE+ Pulse+ Accel/Exchange+ Shazam Jeanie+ Networks AFFN Maestro Alaska option CU24 Regulated IF 7 $4 transaction at small retailers (premium issuer rate) 6 5 4 3 2 1-1 Star+ Interlink Interlink Prepaid NYCE+ Pulse+ Accel/Exchange+ Shazam Jeanie+ Networks AFFN Maestro Alaska option CU24 Regulated IF Notes: Exempt interchange fees are shown from October 211 to 216. See footnote in the title page for the definition of premium issuer rate. + indicates networks with premium issuer rates, which are shown. For other networks, regular rates are shown. * indicates networks with volume tiered rates. The base rates are shown. III-3
7 $4 transaction at gas stations (premium issuer rate) 6 5 4 3 2 1 24 25 26 27 28 29 21 211 212 213 214 215 216 Star*,+ Interlink Interlink Prepaid NYCE*,+ Pulse*,+ Accel/Exchange*,+ Shazam* Jeanie+ Networks AFFN Maestro* Alaska option CU24* Regulated IF 4 $1 transaction at quick-service restaurants (premium issuer rate) 35 3 25 2 15 1 5 24 25 26 27 28 29 21 211 212 213 214 215 216 Star+ Interlink Interlink Prepaid NYCE+ Pulse+ Accel/Exchange+ Shazam* Jeanie+ Networks AFFN Maestro* Alaska option CU24 Regulated IF Notes: Exempt interchange fees are shown from October 211 to 216. See footnote in the title page for the definition of premium issuer rate. + indicates networks with premium issuer rates, which are shown. For other networks, regular rates are shown. * indicates networks with volume tiered rates. The base rates are shown. III-4
IV. Consumer signature versus PIN debit interchange fees 5 $4 transaction at small supermarkets 45 4 35 3 25 2 15 1 5 Visa Signature Debit MC Signature Debit Star Interlink NYCE Pulse Maestro Regulated IF 7 $4 transaction at small retailers 6 5 4 3 2 1 Visa Signature Debit MC Signature Debit Star Interlink NYCE Pulse Maestro Regulated IF Note: Exempt interchange fees are shown from October 211 to 216. IV-1
7 $4 transaction at gas stations 6 5 4 3 2 1 24 25 26 27 28 29 21 211 212 213 214 215 216 Visa Signature Debit MC Signature Debit* Star* Interlink NYCE* Pulse* Maestro* Regulated IF 4 $1 transaction at quick-service restaurants 35 3 25 2 15 1 5 24 25 26 27 28 29 21 211 212 213 214 215 216 Visa Signature Debit MC Signature Debit Star Interlink NYCE Pulse Maestro* Regulated IF Notes: Exempt interchange fees are shown from October 211 to 216. * indicates networks with volume tiered rates. The base rates are shown. IV-2
5 $4 transaction at small supermarkets (premium issuer rate) 45 4 35 3 25 2 15 1 5 Visa Signature Debit MC Signature Debit Star+ Interlink NYCE+ Pulse+ Maestro Regulated IF 7 $4 transaction at small retailers (premium issuer rate) 6 5 4 3 2 1 Visa Signature Debit MC Signature Debit Star+ Interlink NYCE+ Pulse+ Maestro Regulated IF Notes: Exempt interchange fees are shown from October 211 to 216. See footnote in the title page for the definition of premium issuer rate. + indicates networks with premium issuer rates, which are shown. For other networks, regular rates are shown. IV-3
7 $4 transaction at gas stations (premium issuer rate) 6 5 4 3 2 1 24 25 26 27 28 29 21 211 212 213 214 215 216 Visa Signature Debit MC Signature Debit* Star*,+ Interlink NYCE*,+ Pulse*,+ Maestro* Regulated IF 4 $1 transaction at quick-service restaurant (premium issuer rate) 35 3 25 2 15 1 5 24 25 26 27 28 29 21 211 212 213 214 215 216 Visa Signature Debit MC Signature Debit* Star+ Interlink NYCE+ Pulse+ Maestro* Regulated IF Notes: Exempt interchange fees are shown from October 211 to 216. See footnote in the title page for the definition of premium issuer rate. + indicates networks with premium issuer rates, which are shown. For other networks, regular rates are shown. * indicates networks with volume tiered rates. The base rates are shown IV-4
V. Visa, MasterCard, and Discover consumer card interchange fees 12 $4 Visa transaction at small retailers 1 8 6 4 2 Visa Credit Visa Traditional Visa Traditional Reward Visa Signature (c) Visa Signature Preferred (c) Visa Signature Debit Interlink Visa Prepaid 12 $4 Visa transaction at largest retailers 1 8 6 4 2 Visa Credit Visa Traditional Visa Traditional Reward Visa Signature (c) Visa Signature Preferred (c) Visa Signature Debit Interlink Visa Prepaid Note: (c) indicates credit card. V-1
12 $4 MasterCard transaction at small retailers 1 8 6 4 2 MC Credit MC Core MC Enhanced MC World MC World High Value MC World Elite MasterCard Signature Debit Maestro $4 MasterCard transaction at largest retailers 12 1 8 6 4 2 MC Credit MC Core MC Enhanced MC World MC World High Value MC World Elite MasterCard Signature Debit Maestro V-2
12 $4 Discover transaction at small and largest retailers 1 8 6 4 2 Discover Core Discover Rewards Discover Premium Discover Premium Plus Discover Signature Debit Pulse V-3
VI. Commercial credit card interchange fees $6 $2 transaction at retailers $5 $4 $3 $2 $1 $ 26 27 28 29 21 211 212 213 214 215 216 Visa Purchasing Visa Tier I Visa Tier IV MC Purchasing MC Business MC Business World Elite Discover $26 $1, B2B Level II transaction $24 $22 $2 $18 $16 $14 $12 $1 26 27 28 29 21 211 212 213 214 215 216 Visa Purchasing Visa Tier I Visa Tier IV MC Purchasing MC Business MC Business World Elite Discover VI-1
$26 $1, B2B Level III transaction $24 $22 $2 $18 $16 $14 $12 $1 26 27 28 29 21 211 212 213 214 215 216 Visa Purchasing Visa Tier I MC Purchasing MC Business MC Business World Elite Discover $17 $16 $15 $14 $13 $12 $11 $1 $9 $7,5 B2B transaction $8 26 27 28 29 21 211 212 213 214 215 216 Visa Purchasing Visa Tier I Visa Tier IV MC Purchasing MC Business MC Business World Elite Discover VI-2
VII. Consumer versus commercial credit card interchange fees $1 Visa transaction at small retailers 3 25 2 15 1 5 Visa Credit (c) Visa Traditional (c) Visa Signature Preferred (c) Visa Purchasing Visa Tier I Visa Tier IV $1 Visa transaction at largest retailers 3 25 2 15 1 5 Visa Credit (c) Visa Traditional (c) Visa Signature Preferred (c) Visa Purchasing Visa Tier I Visa Tier IV Note: (c) indicates credit card. VII-1
3 $1 MasterCard transaction at small retailers 25 2 15 1 5 MC Credit (c) MC Core (c) MC World Elite (c) MC Purchasing MC Business MC Business World Elite 3 $1 MasterCard transaction at largest retailers 25 2 15 1 5 Note: (c) indicates credit card. MC Credit (c) MC Core (c) MC World Elite (c) MC Purchasing MC Business MC Business World Elite VII-2
$1 Discover transaction at small and largest retailers 3 25 2 15 1 5 Discover Core (c) Discover Premium (c) Discover Premium Plus (c) Discover Business Note: (c) indicates credit card. VII-3