credit and debit card interchange fees assessed to ... and debit card interchange fees assessed to...

Credit and Debit Card Interchange Fees

Assessed to Merchants in the United States

August 2015 Update‡

Payments System Research Department§

Federal Reserve Bank of Kansas City

‡ This update includes regular and “premium issuer” interchange fees for different merchant categories and sizes. In 2010 or after, several PIN-debit networks introduced the “premium issuer” fees, which are assessed on transactions where the cards belong to qualifying issuers that typically commit to a specific level of transaction volume on a given network. Fees shown in this document as assessed to merchants are from individual networks’ fee schedules and may not necessarily represent interchange fee revenue issuers actually earn. Some networks also offer lower interchange fees than represented in the fee schedule to some (large) merchants. § Fumiko Hayashi, Senior Economist, and Joshua Hanson, Research Associate, compiled this update. Data sources are: American Banker (various issues); ATM & Debit News (various issues); Credit Card Management (April 1999); Debit Card Directory (various years); EFT Data Book (various years); Pacificisland.publishpath.com; Vantagecard.com; Monerisusa.com; MasterCard Worldwide; and Visa Inc. The original charts appeared in Fumiko Hayashi, Richard J. Sullivan, and Stuart E. Weiner. 2003. A Guide to the ATM and Debit Card Industry, Federal Reserve Bank of Kansas City; Fumiko Hayashi, 2006. “A Puzzle of Card Payment Pricing: Why Are Merchants Still Accepting Card Payments?” Review of Network Economic, 5(1): 144-174; Fumiko Hayashi, Richard J. Sullivan, and Stuart E. Weiner, 2006. A Guide to the ATM and Debit Card Industry: 2006 Update, Federal Reserve Bank of Kansas City; and Fumiko Hayashi, 2009. “Do U.S. Consumers Really Benefit from Payment Card Rewards?” Federal Reserve Bank of Kansas City Economic Review, First Quarter: 37-63.

I-1

I. Consumer credit card interchange fees

0

20

40

60

80

100

120

Cen

ts

$40 transaction at small supermarkets

Visa Credit Visa Traditional Visa Signature Preferred MC Credit

MC Core MC World Elite Discover Core Discover Premium Plus

0

20

40

60

80

100

120

Cen

ts

$40 transaction at largest supermarkets



I-2

0

20

40

60

80

100

120

Cen

ts

$40 transaction at small retailers



0

20

40

60

80

100

120

Cen

ts

$40 transaction at largest retailers



I-3

Note: * indicates products with volume tiered rates. The base rates are shown.

0

20

40

60

80

100

120

2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts

$40 transaction at gas stations



0

5

10

15

20

25

30

35

40

2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts

$10 transaction at quick-service restaurants


MC Core* MC World Elite* Discover Core Discover Premium Plus

II-1

II. Consumer signature debit card interchange fees

Note: Exempt interchange fees are shown from October 2011 to 2015.

0

5

10

15

20

25

30

35

40

45

50

Cen

ts


Visa Visa Prepaid MasterCard Discover Regulated IF

0

5

10

15

20

25

30

35

40

45

50

Cen

ts



II-2


0

10

20

30

40

50

60

70

Cen

ts



0

10

20

30

40

50

60

70

Cen

ts



II-3

Notes: Exempt interchange fees are shown from October 2011 to 2015.

* indicates networks with volume tiered rates. The base rates are shown.

0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts


Visa Visa Prepaid MasterCard* Discover Regulated IF

0

5

10

15

20

25

30

35

40

2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts


Visa Visa Prepaid MasterCard* Discover Regulated IF

III-1

III. Consumer PIN debit card interchange fees


-10

0

10

20

30

40

50

Cen

ts


Star Interlink Interlink Prepaid NYCE PulseAccel/Exchange Shazam Jeanie Networks AFFNMaestro Alaska option CU24 Regulated IF

-10

0

10

20

30

40

50

Cen

ts



III-2


-10

0

10

20

30

40

50

60

70

Cen

ts



-10

0

10

20

30

40

50

60

70

Cen

ts



III-3



0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts


Star* Interlink Interlink Prepaid NYCE* Pulse*Accel/Exchange* Shazam* Jeanie Networks AFFNMaestro* Alaska option CU24* Regulated IF

0

5

10

15

20

25

30

35

40

2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts


Star Interlink Interlink Prepaid NYCE PulseAccel/Exchange Shazam* Jeanie Networks AFFNMaestro* Alaska option CU24 Regulated IF

III-4


†See footnote ‡ in the title page for the definition of premium issuer rate. + indicates networks with premium issuer rates, which are shown. For other networks, regular rates are shown.

-10

0

10

20

30

40

50

Cen

ts

$40 transaction at small supermarkets (premium issuer rate)†

Star+ Interlink Interlink Prepaid NYCE+ Pulse+Accel/Exchange+ Shazam Jeanie+ Networks AFFNMaestro Alaska option CU24 Regulated IF

-10

0

10

20

30

40

50

Cen

ts

$40 transaction at largest supermarkets (premium issuer rate)†


III-5



-10

0

10

20

30

40

50

60

70

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts

$40 transaction at small retailers (premium rate)†


-10

0

10

20

30

40

50

60

70

Cen

ts

$40 transaction at largest retailers (premium issuer rate)†


III-6


†See footnote ‡ in the title page for the definition of premium issuer rate. + indicates networks with premium issuer rates, which are shown. For other networks, regular rates are shown. * indicates networks with volume tiered rates. The base rates are shown.

0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts

$40 transaction at gas stations (premium issuer rate)†

Star*,+ Interlink Interlink Prepaid NYCE*,+Pulse*,+ Accel/Exchange*,+ Shazam* Jeanie+Networks AFFN Maestro* Alaska optionCU24* Regulated IF

0

5

10

15

20

25

30

35

40

2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts

$10 transaction at quick-service restaurants (premium issuer rate)†

Star+ Interlink Interlink Prepaid NYCE+Pulse+ Accel/Exchange+ Shazam* Jeanie+Networks AFFN Maestro* Alaska optionCU24 Regulated IF

IV-1

IV. Consumer signature versus PIN debit interchange fees


0

5

10

15

20

25

30

35

40

45

50

Cen

ts


Visa Signature Debit MC Signature Debit Star InterlinkNYCE Pulse Maestro Regulated IF

0

5

10

15

20

25

30

35

40

45

50

Cen

ts



IV-2


0

10

20

30

40

50

60

70

Cen

ts



0

10

20

30

40

50

60

70

Cen

ts



IV-3



0

10

20

30

40

50

60

2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts


Visa Signature Debit MC Signature Debit* Star* Interlink

NYCE* Pulse* Maestro* Regulated IF

0

5

10

15

20

25

30

35

2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts


Visa Signature Debit MC Signature Debit Star Interlink

NYCE Pulse Maestro* Regulated IF

IV-4



0

5

10

15

20

25

30

35

40

45

50C

ents

$40 transaction at small supermarkets (premium issuer rate)†

Visa Signature Debit MC Signature Debit Star+ Interlink

NYCE+ Pulse+ Maestro Regulated IF

0

5

10

15

20

25

30

35

40

45

50

Cen

ts

$40 transaction at largest supermarkets (premium issuer rate)†



IV-5



0

10

20

30

40

50

60

70C

ents

$40 transaction at small retailers (premium issuer rate)†



0

10

20

30

40

50

60

70

Cen

ts

$40 transaction at largest retailers (premium issuer rate)†



IV-6


†See footnote ‡ in the title page for the definition of premium issuer rate. + indicates networks with premium issuer rates, which are shown. For other networks, regular rates are shown. * indicates networks with volume tiered rates. The base rates are shown.

0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts

$40 transaction at gas stations (premium issuer rate)†

Visa Signature Debit MC Signature Debit* Star*,+ Interlink

NYCE*,+ Pulse*,+ Maestro* Regulated IF

0

5

10

15

20

25

30

35

40

2004 2005 2006 2007 2008 2009 2010 2011(Oct)

2012 2013 2014 2015

Cen

ts

$10 transaction at quick-service restaurant (premium issuer rate)†

Visa Signature Debit MC Signature Debit* Star+ Interlink

NYCE+ Pulse+ Maestro* Regulated IF

V-1

V. Visa, MasterCard, and Discover consumer card interchange fees

Note: (c) indicates credit card.

0

20

40

60

80

100

120

Cen

ts

$40 Visa transaction at small retailers

Visa Credit Visa Traditional Visa Traditional RewardVisa Signature (c) Visa Signature Preferred (c) Visa Signature DebitInterlink Visa Prepaid

0

20

40

60

80

100

120

Cen

ts

$40 Visa transaction at largest retailers

Visa Credit Visa Traditional Visa Traditional RewardVisa Signature (c) Visa Signature Preferred (c) Visa Signature DebitInterlink Visa Prepaid

V-2

0

20

40

60

80

100

120

Cen

ts

$40 MasterCard transaction at small retailers

MC Credit MC Core MC EnhancedMC World MC World High Value MC World EliteMasterCard Signature Debit Maestro

0

20

40

60

80

100

120

Cen

ts

$40 MasterCard transaction at largest retailers

MC Credit MC Core MC EnhancedMC World MC World High Value MC World EliteMasterCard Signature Debit Maestro

V-3

0

20

40

60

80

100

120

Cen

ts

$40 Discover transaction at small and largest retailers

Discover Core Discover Rewards Discover Premium

Discover Premium Plus Discover Signature Debit Pulse

VI-1

VI. Commercial credit card interchange fees

$0

$1

$2

$3

$4

$5

$6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$200 transaction at retailers

Visa Purchasing Visa Business Visa Signature Business MC Purchasing

MC Business MC Business World Elite Discover

$10

$12

$14

$16

$18

$20

$22

$24

$26

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$1,000 B2B Level II transaction



VI-2

$10

$12

$14

$16

$18

$20

$22

$24

$26

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$1,000 B2B Level III transaction

Visa Purchasing Visa Business MC Purchasing


80

90

100

110

120

130

140

150

160

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$7,500 B2B transaction



VII-1

VII. Consumer versus commercial credit card interchange fees


0

50

100

150

200

250

300

Cen

ts

$100 Visa transaction at small retailers

Visa Credit (c) Visa Traditional (c) Visa Signature Preferred (c)

Visa Purchasing Visa Business Visa Signature Business

0

50

100

150

200

250

300

Cen

ts

$100 Visa transaction at largest retailers

Visa Credit (c) Visa Traditional (c) Visa Signature Preferred (c)

Visa Purchasing Visa Business Visa Signature Business

VII-2


0

50

100

150

200

250

300C

ents

$100 MasterCard transaction at small retailers

MC Credit (c) MC Core (c) MC World Elite (c)

MC Purchasing MC Business MC Business World Elite

0

50

100

150

200

250

300

Cen

ts

$100 MasterCard transaction at largest retailers

MC Credit (c) MC Core (c) MC World Elite (c)

MC Purchasing MC Business MC Business World Elite

VII-3


0

50

100

150

200

250

300

Cen

ts

$100 Discover transaction at small and largest retailers

Discover Core (c) Discover Premium (c) Discover Premium Plus (c) Discover Business

credit and debit card interchange fees assessed to ... and debit card interchange fees assessed to...

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