Visa Will Support Dual Interchange Schedule
Visa will offer a dual debit interchange schedule that network sources say should substantially shield their debit interchange income from drastic decreases, at least temporarily.
Visa's announcement came on a Webinar conducted by senior Visa executives for the executives of payment networks and CUSOs, network sources confirmed. One of the participants was Bill Sheedy, group executive for the Americas for Visa. Sheedy told executives that the debit interchange schedule for card issuers that that are exempt from the proposed debit interchange cap would be 'substantially similar' to existing debit interchange, the sources reported.
But he also noted that debit interchange would still likely face downward pressure in the future and that future debit interchange levels could not be guaranteed.
Executives left the web event substantially encouraged and expected that other payment processors would follow Visa's lead. But some also pointed out that the interchange schedule is only half the picture and that Visa's announcement would not have an impact on the network choice provisions in the Federal Reserve's proposed debit interchange rule. Those provisions would also continue to exert downward pressure on debit interchange, the sources said
Visa's announcement came in reaction to the Federal Reserve Board's announcement of a debit interchange rule that could have significantly cut the debit interchange for most credit unions.