Interchange

Visa Interchange on Domestic Transactions in Australia

The fees listed here are payable by Australian acquiring institutions to Australian issuing institutions in relation to domestic Visa Credit, Visa Debit, and Visa Prepaid purchase transactions processed through Visa’s National Net Settlement Service (NNSS).

Domestic Visa Credit Interchange Rates

Effective 1 November 2015, the following interchange rates apply to domestic transactions processed through Visa’s NNSS*:

 * Domestic transactions not processed through Visa’s NNSS will receive an interchange rate of 0.550%, inclusive of GST
** % = percent of the transaction value

Domestic Visa Debit Interchange Rates

Effective 1 November 2015, the following interchange rates apply to domestic transactions processed through Visa’s NNSS*:

 * Domestic transactions not processed through Visa’s NNSS will receive Electronic and Standard interchange rates of 8.8 cents and 0.33%, respectively, inclusive of GST
** All fees are represented in Australian Dollars; cents = cents per transaction; % = percent of the transaction value

Domestic Visa Prepaid Interchange Rates

Effective 1 November 2015, the following interchange rates apply to domestic transactions processed through Visa’s NNSS*:

 * Domestic transactions not processed through Visa’s NNSS will receive Electronic and Standard interchange rates of 8.8 cents and 0.33%, respectively, inclusive of GST
** All fees are represented in Australian Dollars; cents = cents per transaction; % = percent of the transaction value

Different fees apply when a Visa transaction involves either an overseas accountholder or an overseas merchant. Merchants should direct all questions relating to interchange fees to their Acquiring Institution.

There is a precedence in which interchange fee programs and rates are applied.  Generally, acceptance based rates (e.g., utility, insurance, and recurring) take precedence over product-based rates (e.g., Platinum and Business).  The following table provides a brief description of Visa’s domestic interchange fee programs in Australia.

Interchange Fee Program  Definition

Payable on Visa transactions for merchants who are non-political fundraising organisations (organisations engaged in soliciting charitable donations/contributions) and social service organisations engaged in social welfare services, including advocacy groups, community organisations, and health agencies.

The charity must be recognized by the Australian Tax Office as a charitable organization, and must only be used for donations / payments that may be claimed as tax deductions.

The Charities Act in Australia details that to be a recognised as a charity, an organisation must:
•         be not-for-profit
•         have only charitable purposes that are for the public benefit
•         not have a disqualifying purpose
•         not be an individual, a political party or a government agency

If a Charitable and Social Service Organisation has lines of business other than soliciting charitable donations, that activity must be classified appropriately according to the business line.

Payable on Visa transactions for merchants designated by Visa to be strategic in which they meet certain volume and/or growth thresholds. The range of interchange rates available to this program is displayed.

Payable on Visa transactions initiated at a merchant who has entered into an agreement with their Acquiring Institution to participate in the Recurring Payment Transaction Service, where the accountholder has signed an agreement with the merchant to authorize the merchant to bill their Visa account for recurring payments, the transaction details are sent to the Issuing Institution, the Issuing Institution authorizes the transaction and the merchant sends the transaction to its Acquiring Institution for clearing and settlement with the Issuing Institution within four days.

Payable on Visa transactions initiated at any merchant defined as a Government entity (meeting Visa’s merchant classification requirements).

Payable on Visa transactions for merchants that provide the generation, transmission and/or distribution of electric, or gas power, or other utility type services on an ongoing basis. This also includes merchants providing water supply system services and merchants primarily engaged in the collection and disposal of refuse.

NOTE: Merchants providing telecommunication services are not eligible for this rate.

Payable on Visa transactions for designated schools that accept Visa for payment. Schools include elementary, secondary, universities, correspondence schools, business and secretarial schools and vocational and trade schools.

Payable on Visa transactions for merchants that sell all types of personal or business insurance policies. This includes merchants that provide the following types of insurance: automobile, life, health, hospital, medical, and dental insurance, homeowners and renters insurance, real estate title insurance, pet health insurance and flood, fire or earthquake insurance. This also includes direct marketing insurance services e.g., accidental death, travel insurance, etc.

Payable on Visa transactions for retail sellers of automotive gasoline and receive payment either at the counter through signing a sales slip or through the use of an Automated Fuel Dispenser (AFD). Automated Fuel Dispensers enable accountholders to purchase fuel by completing the transaction at the pump.

Payable on Visa transactions for merchants that sell a complete, full line of food merchandise for home consumption. Most of the food merchandise is perishable, including self-service groceries, meat, produce and dairy products. In addition, they also sell canned, frozen, prepackaged, dry foods, a limited selection of house wares, cleaning and polishing products, personal hygiene products, cosmetics, greeting cards, books, magazines, household items, and dry goods. These merchants may also operate specialized departments such as an in store deli counter, meat counter, pharmacy, or floral department. 

NOTE: Merchants typically known as convenience stores that sell a limited selection of products or specialty items are not eligible for this rate.

Payable on Visa transactions for merchants that provide local and suburban mass passenger transportation over regular routes and on regular schedules.

NOTE: Taxicabs, limousines, and bus lines are not eligible for this rate.

Payable on Visa transactions initiated at any merchant where an accountholder presents a Visa standard consumer product (Visa Classic, Visa Gold) that is electronically read at a merchant terminal (a magnetic stripe card, a chip card or a device linked to their Visa account), all data on the Visa standard consumer product is successfully transmitted to the Issuing Institution, the Issuing Institution authorizes the transaction and the merchant sends the transaction to its Acquiring Institution for clearing and settlement with the Issuing Institution within four days.

Applicable to all transactions on a Visa standard consumer product that do not qualify for any other rate detailed. Typically these are transactions on Visa Classic and Gold products that are used in a non-Face to Face environment (e.g., internet) or a non-electronic transaction (paper based). An electronic Classic or Gold transaction that is not settled within 4 days would receive a standard interchange rate. 

Other Key Definitions 

Commercial product – a generic name given to the following products: Visa Business, Visa Corporate and Visa Purchasing
Business product – a commercial product targeted at small businesses
Business Premium product – a commercial product targeted at high value small businesses, for example Visa Business Platinum
Business Super Premium product – a commercial product targeted at high net worth small businesses, for example Visa Business Signature
Corporate product – a commercial product targeted at larger organizations for travel and entertainment and general purchases
Purchasing product – a commercial product targeted at larger organizations for general purchasing and procurement
Standard consumer product – a generic name given to the following products: Visa Classic, Visa Gold and Visa Electron
Premium consumer product – a generic name given to a Visa premium product such as Visa Platinum 
Super Premium consumer product – a generic name given to the following products: Visa Rewards  (including the Commonwealth Bank Visa Diamond and ANZ Black Visa products) and Visa Signature
High Net Worth consumer product – a generic name given to a Visa high net worth product such as Visa Infinite
Acquiring Institution – a Financial Institution which has applied and been granted membership to Visa in Australia for the purpose of acquiring payment product transactions in Australia
Issuing Institution – a Financial Institution which has applied and been granted membership to Visa in Australia for the purpose of issuing payment products in Australia
Accountholder – a person who has a Visa account issued by an Issuing Institution which is a member of Visa in Australia
Merchant – an entity which has entered into an agreement to accept Visa products for the purchase of goods and services with an Acquiring Institution which is a member of Visa in Australia
Domestic Visa Credit transaction – a transaction in Australia between an Australian accountholder and an Australian merchant involving the purchase of goods and services using a Visa Credit product
Domestic Visa Debit transaction – a transaction in Australia between an Australian accountholder and an Australian merchant involving the purchase of goods and services using a Visa Debit product
Domestic Visa Prepaid transaction – a transaction in Australia between an Australian accountholder and an Australian merchant involving the purchase of goods and services using a Visa Prepaid product