In July, Polish merchant acquirers will see the interchange fees they pay Visa issuers for their card transaction cut considerably, with the new rate going to 0.5 percent of the sale from 1.2 percent to 1.3 percent currently, Reuters reported on March 31.
In July, Polish merchant acquirers will see the interchange fees they pay Visa issuers for their card transactions cut considerably, with the new rate going to 0.5 percent of the sale from 1.2 percent to 1.3 percent currently, Reuters reported on March 31.
The change is the result of a new law that took effect this year. The rate reduction takes effect July 1. Acquirers pay issuers interchange and pass the expense along to their merchant customers as part of the discount rate, which also covers processing and other services.
The reduction in interchange revenue is expected to put pressure on Polish banks, which reportedly have been struggling to earn card revenue because of low interest rates.
In the U.S., Visa is embroiled in litigation over credit card interchange rates, with Walmart being the latest to sue over how the rates are set.
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