Interchange fee levels

On 24 July 2002, Visa International received an exemption from the European Commission concerning Visa Europe's intra-regional interchange.

In accordance with observing the principles of this exemption, Visa Europe periodically carries out cost studies in order to calculate a cost benchmark based on three categories of issuer costs. The purpose of the cost benchmark is to act as a cap on the effective rate of intra-regional interchange within the European Economic Area (EEA).

Where requested by merchants, acquirers are required to provide certain information to the merchant. This comprises the applicable rate of Visa Europe's intra-regional interchange, and the relevant proportions of the three cost categories that make up the cost benchmark.

The relevant information is as follows:

Visa Europe intra-regional interchange reimbursement fees – effective as at 1 January 2008

Transaction environment	Interchange fees	Credit & deferred debit	Immediate debit
Card Present	EMV Chip Fee	0.55%	€ 0.26
	Electronic Authorisation Fee (EA)	0.65%	€ 0.27
	Electronic Data Capture Fee (EDC)	0.75%	€ 0.27
	Airline Fee **	0.95%	n/a
	Non-Electronic Fee	0.95%	€ 0.30
	V PAY	n/a	€ 0.26

Card Not Present *	Secure Electronic Commerce Fee	0.55%	€ 0.26
	Card Not Present Fee (CVV2)	0.65%	€ 0.29
	Recurring Transactions	0.65%	€ 0.29
	Card Not Present Fee (CNP)	0.75%	€ 0.29
	Airline Fee **	0.85%	n/a
	Non-Electronic Fee	0.85%	€ 0.30
	V PAY	n/a	€ 0.26
* A temporary rate revision applicable to intra-regional, consumer credit and deferred debit card-not-present interchange reimbursement fees effective from 1 January 2008. ** Consumer airline transactions are eligible for all other consumer incentive fees if they meet the qualification criteria.

Visa Europe Benchmark cost components (total)	Credit & deferred debit	Immediate debit
Cost of Payment Guarantee	48%	51%
Cost of Processing	28%	49%
Cost of Free Funding Period	24%	Nil

Visa Europe Benchmark cost components (non CNP)	Credit & deferred debit	Immediate debit
Cost of Payment Guarantee	48%	49%
Cost of Processing	27%	51%
Cost of Free Funding Period	25%	Nil

Visa Europe Benchmark cost components (CNP)	Credit & deferred debit	Immediate debit
Cost of Payment Guarantee	45%	71%
Cost of Processing	34%	29%
Cost of Free Funding Period	21%	Nil
All information regarding benchmark costs is for EEA as currently constituted (as of 17 July 2007).