Article Highlights

Key Takeaway:

A wide range of U.S. merchants pay the same fixed debit card fees based on interchange, including supermarkets, gasoline stations, restaurants and hotels. But transit agencies accepting open-loop payments appear to be among the hardest hit by these fees because of the low value of most of their transactions.

Key Data:

Like other merchants, transit agencies in Europe pay only .2%, or 20 basis points, on debit transactions; and .3%, 30 basis points, for credit. That means the debit interchange rate in Europe is still 10 times lower than Visa’s new, lower debit interchange rate for fare transactions of $5 or less.

Organizations Mentioned:

Visa
Transport for London
• CMSPI
• Merchants Payments Coalition

A wide range of U.S. merchants pay the same fixed debit card fees based on interchange, including supermarkets, gasoline stations, restaurants and hotels. But transit agencies accepting open-loop payments appear to be are among the hardest hit by these fees because of the low value of most of their transactions.

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