If your company accepts credit card payments (which it should), chances are, you’re going to be affected by Visa’s interchange rates. Motely Fool Money cites research showing that there are around 1.3 billion Visa credit in circulation, making it one of the most widely used cards in the world. It’s virtually impossible for a business to not accept Visa cards.
Visa interchange rates are the fees charged by Visa to process transactions between issuing banks and merchants. These fees cover the costs of managing the network, ensuring security, and facilitating the transfer of funds between banks.
Visa generally updates interchange rates semiannually, so if you’re looking to keep up with the card network’s rates, you can check them twice a year.
Overall, understanding interchange rates is crucial for anyone who accepts credit card payments because they form the foundation of the fees you’ll encounter when accepting credit cards. It’s wise for merchants to keep an eye on these rates, as they can affect their bottom line and profitability.
TL;DR
- Interchange rates are the fees charged by credit card networks.
- As one of the most widely used card brands in the world, it’s virtually impossible to not encounter Visa cards at checkout. As such, it’s vital that you pay attention to Visa’s rates.
- While you can’t avoid the rate hikes, there are strategies and resources available to help merchants mitigate the impact.
What exactly are interchange rates?
Interchange rates are the fees credit card networks (like Visa, Mastercard, American Express, and Discover) charge to facilitate card transactions between merchants and banks. These rates are set and collected by the network for processing transactions and maintaining the payment infrastructure.
Factors that affect visa interchange rates
As with other credit card networks, Visa sets interchange reimbursement fees based on factors that influence the cost and risk of processing transactions. Understanding these variables can help you, the merchant, make smarter decisions about how to accept Visa cards and manage payment processing.
Card type
Interchange rates can vary significantly depending on the type of Visa card used—whether it’s a basic Visa debit card, a Visa Signature Preferred credit card, or a Visa Keyed Business or Visa Debit CPS card.
Generally, debit cards tend to have lower interchange fees than credit cards, especially when processed as card-present transactions.
On the other hand, premium or rewards cards—like Visa Keyed Rewards Signature or Traditional Rewards—often come with higher rates due to the perks they offer cardholders, which are funded in part by interchange reimbursement fees. Understanding the mix of card types your customers use can help you forecast transaction fees more accurately and choose the right credit card processor for your business.
Crucially, as of January 2026, Visa implemented a 75-basis-point (0.75%) increase to Level 2 rates specifically for Small Business credit products. This change makes legacy Level 2 optimization actually more expensive than sending no data at all, effectively forcing a shift toward the new “Product 3” standards.
Merchant category code (MCC)
Your merchant category code (MCC) plays a significant role in determining which Visa interchange rates apply to your business. Visa assigns interchange reimbursement fees to different MCCs based on industry norms and risk levels.
For example, supermarkets may qualify for a special supermarket tier with lower rates, while merchants in travel or services may face higher fees. Your business type impacts how Visa and other card issuers view your transactions—and whether you qualify for lower rates or special program rates. Ensuring your MCC is accurate and optimized is essential, as misclassification can lead to fee increases and missed opportunities to save on processing fees.
Transaction type
Whether a transaction is card-present or card-not-present has a major impact on the interchange rates you’re charged. Card-not-present transactions—like online transactions, keyed-in sales, and phone orders—tend to carry higher interchange fees due to the increased risk (think fraud and lack of physical card verification).
In contrast, card-present transactions made via EMV chip technology, tap, or swipe are typically cheaper to process. Visa also offers different rates for money transfers, recurring payments, and purchasing cards, each tied to a specific transaction environment and program rate. If your team understands how to process transactions the right way—whether it’s using a chip reader or encouraging contactless payments—you can lower your merchant discount rate and reduce the fees charged by your payment processors.
Visa interchange rates
At the time of writing, Visa last updated its rates in October 2025. You can view the full document here.
Overview of the new rates
Visa’s latest interchange schedule reflects a shift to the Commercial Enhanced Data Program (CEDP). This replaces the old Level 3 program with a more rigorous category called Product 3. While the rates are lower, they are only accessible to “Verified Merchants” who pass Visa’s AI-driven data audits. Additionally, the legacy Level 2 program is officially sunsetting on April 18, 2026, meaning merchants can no longer rely on simple tax-and-zip-code data for discounts.
Card-present debit transactions at supermarkets remain among the lowest-cost scenarios. For example, Visa’s interchange fee for exempt debit cards at supermarkets is a flat $0.30 per transaction. Regulated debit cards are priced at 0.05% + $0.21 per transaction.
By contrast, card-not-present (CNP) debit transactions generally carry higher rates, particularly for ecommerce. For exempt debit cards, common ecommerce categories such as CPS/Card Not Present and CPS/eCommerce Basic are priced at 1.65% + $0.15. However, certain qualifying categories—such as Retail 2 Card-Not-Present or utility payments—may be lower and subject to caps or flat fees. Small-ticket debit purchases are priced at 1.55% + $0.041. These higher rates reflect the increased risk and processing costs associated with remote transactions.
On the credit card side, interchange varies even more widely based on merchant category and card tier. Some categories, such as charities, benefit from lower rates (for example, 1.35% + $0.05). In contrast, everyday sectors like restaurants and travel face higher fees.
For example, card-present restaurant transactions on most Visa consumer credit products are typically assessed at 2.60% (minimum $0.04), depending on the card tier. Card-not-present consumer credit transactions generally range from approximately 2.05% to 2.60% + $0.10, depending on merchant category, qualification level, and product tier.
Certain recurring or preferred categories may qualify for lower pricing, while higher-risk categories (such as restaurants processed card-not-present) can be priced higher.
Comparison with previous years
How does Visa’s latest interchange update compare to its previous release? Looking at Visa’s October 2025 update, the adjustments are relatively subtle.
Rates for most card-present debit transactions remain unchanged. For example, supermarket debit rates stayed flat at $0.30 (exempt) and 0.05% + $0.21 (regulated). Likewise, small-ticket and restaurant debit fees remained consistent, suggesting that Visa maintains stability in everyday, high-volume use cases.
Changes are more visible in documentation and categorization. Visa continues to emphasize detailed breakdowns of regulated vs. exempt cards and card-present vs. not-present transactions, as well as small merchant programs. These distinctions give merchants more clarity—and potential levers to control processing costs.
How to navigate interchange rates
Interchange rates—regardless of whether set by Visa, Mastercard, or any other card network—are outside merchants’ control.
Now, you may not be able to lower or negotiate interchange fees, but there are steps you can take to manage your overall payment processing costs.
Choose the right payment processor
Not all payment processors are created equal—and the pricing model they use can significantly impact your bottom line. Some providers use tiered or blended pricing models, which group transactions into vague categories (like “qualified” or “non-qualified”) without clearly showing you the underlying costs. While these models may seem simple, they often mask the true interchange fees and lead to higher overall costs.
A more transparent alternative is interchange-plus pricing, where the processor simply adds a fixed markup on top of the published interchange rate. Providers like Payment Depot offer this model, giving you greater visibility into what you’re paying and why.
Even better? Consider a subscription-based processor like Stax, which charges a flat monthly fee and zero markup on interchange. However, note that all merchants qualifying for the new Product 3 rates now incur a mandatory 0.05% CEDP participation fee assessed by the Visa network itself. Choosing a processor like Stax ensures you aren’t paying a markup on top of this new network requirement. This model is particularly beneficial for growing merchants, as you keep more of your sales as volume increases. By choosing the right processor and pricing model, you can take more control over your payment costs—without sacrificing simplicity or scalability.
Train your staff in transaction optimization
Your team plays a crucial role in minimizing processing fees. One of the easiest ways to save is by ensuring that transactions are conducted in the most cost-efficient way possible. This means encouraging staff to accept payments via chip, tap, or swipe rather than manually keying in card details, which often results in higher interchange rates due to increased fraud risk.
When you train your team on best practices for in-person and online payments, you reduce the chances of triggering higher fees unnecessarily. Over time, even minor adjustments in how transactions are processed can lead to big savings—especially in high-volume environments.
Consider surcharging
If you want to offset the cost of credit card processing, surcharging might be the solution. With surcharging, merchants add a small fee to credit card transactions to cover the associated processing costs—effectively passing the fee to the customer.
This is where CardX by Stax comes in. CardX provides a turnkey, compliant surcharging solution that makes it easy to implement and manage a surcharge program across your storefront or online checkout.
The platform helps you stay within legal and card network rules while offering a seamless customer experience.
When used thoughtfully, surcharging can be a powerful way to preserve margins, especially for merchants in industries with tight pricing structures or frequent credit card use.
Educate yourself and stay informed on interchange fee updates
Interchange fees may be out of your control, but staying informed puts you in a better position to respond strategically. As mentioned above, card networks like Visa and Mastercard update their rates semiannually, and certain changes could impact your effective rate depending on your transaction mix.
Make it a habit to review rate schedules, stay connected with your processor, and consult with your accountant or finance team regularly. Also, consider following trusted fintech blogs or merchant advocacy groups that break down updates in plain English.
The more you understand the “why” behind your fees, the better equipped you are to make decisions about your payment strategy—whether that means negotiating processor terms, adjusting your pricing model, or training your staff to optimize transactions.
Conclusion
Interchange fees will fluctuate—that’s a fact. But there are plenty of options available to merchants to help reduce the impact these new fees will have on their profit margins. Talk to Stax today to find out how much we can help you save on payment processing fees.
Request a Quote
