Visa is set to introduce a network
participation fee in the US for its entire debit, credit and
prepaid card services.
The new policy, and shift from per-transaction
fees, comes after Visa’s quarterly profit rose by 40% and is
being done in advance of the new fees caps that will take effect
later this year as part of the 2010 Dodd-Frank financial reform
law.
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In a conference call with analysts following
the scheme’s Q3 2011 results, Visa’s CEO Joseph Saunders confirmed
the shift in strategy but chose not to disclose what the
merchant participation will be. It is claimed it will be dependent
on the merchant’s size and the number of locations the company
holds however future price changes have not been ruled out. Visa
will also lower the variable rate charged for transactions as part
of the new policy.
Thanks to the interchange cap inposed by Dodd-Frank, Saunders
has predicted 2012 to be a “low point” for debit card processing
fees.
“We won’t do as well as we have,” he said.
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By GlobalData
