Fall Release 2008
Summary of Changes

The following information details the changes Visa and MasterCard will implement as part of their Fall 2008 Compliance Release, effective
October 3, 2008. This information can help you to determine what effect the changes may have on your business and what action you may want to take to ensure that your transactions are qualifying at the best levels allowed by Visa and MasterCard.

Visa

Visa is making two adjustments that will affect U.S. transactions processed under all three commercial products:

• The Level II data incentive interchange rate will be increased.
  
• The Standard interchange rate will be increased.
  

• For Visa Corporate products, Visa is reducing the Retail interchange rate and increasing the Electronic interchange rate.
  
• For Visa Purchasing products, Visa is increasing the Retail interchange rate, the Card Not Present interchange rate, and the Electronic interchange rate.
  

Visa will allow GSA Purchasing Card and GSA Fleet Card transactions accepted at Non T&E* Merchant locations to be eligible for the Level 3 Interchange Rate program

• Transactions must meet the existing level 3 rate criteria to qualify
  
  • There are no changes to the existing Level 3 data requirements
• Today the best rate is Level 2
  

• Visa will delete the minimum transaction amount of $5000 and will delete the GSA Large Ticket I rate program

• Visa is introducing a new interchange fee program and rate for domestic debt repayment transactions
  
• Only transactions for collectible consumer debt on auto loans, credit card payment, mortgage payments, and student loans are allowed
  
• Only domestic consumer debit card transactions from the following MCC’s are eligible
  
  • 6012 —Financial institutions–merchandise and services
  • 6051 —Nonfinancial institutions–foreign currency, money orders (not wire transfer), and travelers cheques

• In the October 2002 business release, Visa announced a pilot program for U.S. federal, state, and real estate property tax payments which is scheduled to end in October 2008
  
• With the expiration of the tax pilot, Visa will implement a new interchange rate program for Visa consumer debit card transactions submitted by acquirers from a participating tax authority or third-party service provider accepting payments on behalf of the tax authority
  

MasterCard

Consumer Bill Payment

• Utility Rate Program Changes
  • MasterCard will no longer require the “U” code to qualify for Utility Interchange nor are they requiring registration
  • Utility (MCC 4900) consumer card qualified sales will only be eligible for the Utility Interchange rate program(s)
• MasterCard will no longer allow the Merit 3 or Service Industries break-even
• Service Industries Rate Program Changes
  • MasterCard is removing the following Merchant Categories as eligible MCCs to qualify for the Service Industries program (SIP)
• 4812 (Telecommunication Equipment/Sales)
• 5960 (Insurance - Direct Marketing)
• 6300 (Insurance Sales, Underwriting, and Premiums)
• UCAF (Full and Merchant), Merit III and Merit I Debit Program Changes
  • MasterCard is removing the following Insurance merchant categories as eligible for the UCAF (Full and Merchant), Merit I, and Merit III Consumer Debit interchange programs
• 5960 (Insurance - Direct Marketing)
• 6300 (Insurance Sales, Underwriting, and Premiums)
• MasterCard will no longer allow Real Estate (MCC 6513) to qualify for Merit III (Base) and Merchant UCAF Consumer Debit Rate programs

• MasterCard is requiring all QPS merchants, regardless of Merchant Category Code, to obtain full authorization in order to be chargeback protected
• The following MCC’s that previously received chargeback protection with no authorization required, will have to obtain full authorizations
  • 5814 (Fast Food Restaurants)
  • 7832 (Motion Picture Theaters)
  • 7523 (Automobile Parking Lots and Garages)