April 2016 Card Brand Changes

January 18, 2016

Visa and MasterCard have various changes taking effect this April, as detailed below.

Visa

Effective April 15, 2016, Visa will eliminate the following Canada domestic interchange programs for Visa Corporate and Visa Purchasing Card transactions.

Interchange Program Rate
Recurring Payments 1.85%
Emerging Segments 1.80%

 

Transactions currently qualifying for these rates will move to one of the following existing interchange programs. 

Interchange Program Rate
Enhanced Data – Level 2 1.60%
Enhanced Data – Level 3 1.40%
Standard 2.00%
Electronic 1.90%

 

MasterCard

Effective April 3, 2016, a new MasterCard Address Verification Service fee will be implemented. When a merchant performs an AVS verification in the authorization request, a fee of $0.01 will be assessed for both card present and card-not-present transactions.


Effective April 15, 2016, MasterCard is introducing a new Canada domestic interchange program for transactions initiated through the MasterPass Wallet and are properly identified as a MasterPass transaction.

Interchange Program Current Effective April 15, 2016
Consumer Base MasterPass Credit N/A 1.61% + $0.00
Consumer High Spend MasterPass Credit N/A 1.89% + $0.00
Consumer Premium High Spend MasterPass Credit N/A 2.49% + $0.00
Consumer MasterPass Debit N/A 1.00% + $0.00

 


Effective April 15, 2016, MasterCard will introduce three new Canada domestic interchange programs – Emerging Sectors, Charity, and Recurring Payments – for consumer debit card transactions.

  • Emerging Sectors – Eligible to card present and card-not-present transactions under one of the following MCCs:
    • 4900 – Utilities
    • 6513 – Real Estate Agents and Managers – Rentals
    • 8211 – Schools, Elementary and Secondary
    • 8220 – Colleges, Universities, Professional Schools and Junior Colleges
    • 8299 – Schools and Educational Services not elsewhere classified
    • 8351 – Child care services
    • 9311 – Tax Payments
    Transactions under MCCs 8211, 8220, 8299, and 8351 must have a minimum transaction amount equal to or greater than $1,000 CAD.
  • Charity – Eligible to card present and card-not-present transactions under MCC 8398
  • Recurring Payments – Eligible to card-not-present recurring payments
Interchange Program Rate
Emerging Sectors 0.30%
Charity 0.30%
Recurring Payments 0.60%

 

If you have any questions, please contact your Vantiv eCommerce merchant or partner relationship manager.

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