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Under a new, tiered interchange rate structure that Visa USA will implement in October for its Plus national ATM network, fees debit card issuers pay to ATM independent sales organizations and retailers that own ATMs will be reduced.
Smaller independent sales organizations and merchant deployers, already hit with flat or shrinking automated teller machine transaction volumes that generate surcharge revenue, probably also will see reductions in interchange revenue beginning in late 2005 if they do not upgrade their ATM fleets.
Under a new tiered Visa Plus ATM network interchange rate structure, which takes effect in October, acquiring fees issuers pay to many ISOs and retailer ATM owners will be reduced. That means small ISOs and storeowners will receive less in interchange for acquiring Plus ATM transactions. Some of the largest ISOs, though, may continue to earn the same interchange revenue they do now, according to an outline Visa USA released recently.
Financial-institution ATM operators will qualify for the highest-rate tier, which is the current Plus interchange rate. Many small ISOs and retailer ATM owners, however, will qualify for a rate that pays them less than they are receiving now,...