Visa has outlined plans to change its fee structure for US merchants, introducing a network participation charge and cutting its variable processing costs.
During a conference call with analysts after the firm posted a 40% rise in third quarter profits, Visa CEO Joseph Saunders set out the new network participation fee for all debit, credit and prepaid card services.
According to Digital Transactions, no details were given on how much the fee will be but it will vary depending on the merchant's size and how many locations it has. Visa will also lower the variable rate charged for transactions.
The new structure is designed to help Visa attract debit routing volume and fend off competition coming its way thanks to the Durbin Amendment to Dodd-Frank, which insists that issuers enable two unaffiliated networks for electronic debit transactions.
Saunders says that despite the new structure being put in place, he expects debit routing volumes to fall in 2012 before picking up again the following year.
Visa outlines new fee structure to defend its debit business - Digital Transactions