15 FEBRUARY, 2018
Visa is changing its Europe region transaction processing pricing, while also bringing the Europe region into alignment with Visa’s global pricing structure.
The acquisition of Visa Europe by Visa Inc. has led to a standardization of fees across regions. Visa has also leveled the field by removing previously tiered volume based pricing rebates for European acquirers.
Effective for transactions from 1 April 2018, Visa is revising its acquirer transaction processing pricing in the Europe region, as follows:
- Removal of tiered (association operating model) pricing.
- Introduction of a flat-rate fee for all acquirers.
- Introduction of a new Authorization fee.
- Increased Card-not-Present (CNP) fees for Interregional transactions.
How does this impact me as a merchant?
The impact of these changes will depend on your average transaction value (ATV) and your regional card mix. You will be more negatively impacted with increased fee levels by this Visa pricing change if you:
- Process a significant share of intra-European and interregional transactions.
- Have a significant number of account validations and authorization attempts.
- Have low average checks (higher impact from fixed fees).
- Have a significant number of refunds and/or cancellations.
- Process a large share of CNP transactions from non-European issuer countries.
You may be more positively impacted with lower fee levels by this Visa pricing change if you:
- Have a high average transaction value and process mainly domestically.
You can reduce the impact of these modifications by processing transactions domestically. As part of our Interchange ++ model, Bambora can help you look into the best way to optimize your Scheme fees and Interchange rates based on your card mix in the markets where you have meaningful presence.
Contact us for more information! Transparent acquiring is what we’re all about.