E-Commerce Merchants To Pay More For Visa Card Payments In The US, Reports
05 Feb 2020
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- Reports have indicated that the payment service provider Visa would soon apply variable interchange rates to merchants in the US.
- Once implemented, some merchants would have to pay more for accepting payments on Visa cards, including e-commerce platforms, while others including the rale estate category would have to pay less.
According to reports, it has been revealed that Visa
might be revising its rates that are applied to merchants in the US who accept its cards as a mode of payment. The proposed revision has been outlined in a document that has reportedly been circulated among banks by the company. The report has highlighted that the payments service provider would be charging variable rates to merchants, depending upon the methodology employed to accept payments from customers by the merchants and also the merchant itself. The details mentioned in the report have indicated that the rates applied to e-commerce websites are likely to see an increase, while they would decline for transactions conducted in real estate as well as education service sectors. According to Visa, the company has proposed these changes after conducting a review of its business operations in the US. The company says that the move is aimed towards optimization of the acceptance as well as usage of its services, and to also apply an appropriate rate to its products considering their value in the market. This increase would be applied to the interchange rates being offered by Visa in the country. The interchange fees are paid by merchants to banks for all the transactions they accept via debit or credit cards in their stores.