You are well aware that we have made a 5-year commitment to the Department of Finance to hold average domestic consumer credit interchange to 1.50%. I should remind you that interchange will be just one part of the cost of acceptance that your members see, but certainly it is a large input to the overall cost. It has been one year since the reduced interchange rates went into effect, and we have done very well in our modelling and have only small adjustments to stay current on our commitment.
As such, we are announcing an adjustment to our interchange rates, specifically to expand the Grocery Industry category to include 4 Food Retail MCCs (the additions are locations classified as butchers, bakeries, confectionary/candy and dairy) and to adjust the rates within the category. Grocery is one of two major industry categories (gas is the other) where we offer a lower rate category. The effect for your members is a reduction of 10 basis points (or .1 percent) reducing standard interchange for your category to 1.23%. Visa Infinite interchange is also being reduced to 1.42% (currently 1.52% so same reduction as Classic).
The changes go into effect in October allowing time for system changes.
I think it is very good news for the competitiveness of your members and I hope you see the value we place in the trade and our partnership with you. Warm regards. Paul Rogers VISA
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