Visa International Card-Not-Present Interchange

Visa has a specific interchange for transactions that occur using an international card in a card-not-present environment. The term “Card-Not-Present” refers to credit card transactions where the card is either keyed in or the transaction is taking place online. These transactions tend to have higher interchange rates because they are more susceptible to fraud. However, there are ways to reduce the interchange rates if some requirements are adhered to.

To qualify for these rates, a transaction must meet certain requirements. First, the transaction must pass one authorization protection tool, such as CVV or AVS. Second, the card details must be entered manually, to make it an “ecommerce” or “card not present” transaction, rather than a “card present” transaction (one where the card is swiped through or an EMV chip is inserted into a terminal). Additionally, the transaction must be settled within one day and all authorization data and settlement data should match the cardholder information that the bank has on file. Lastly, both the cardholder and the cardholder’s bank must participate in the Verified by Visa program, which is Visa’s 3D Secure fraud prevention tool (learn more here).

Visa refers to international card-not-present interchange rates as “international secure ecommerce interchange rates.” The rates change depending upon what type of card is used.

Secure ecommerce refers to online transactions that take precautions in protecting cardholder information by checking AVS or asking for the CVV. If someone uses a Visa Classic (the simplest credit card Visa offers, offers no rewards), Visa Gold (Visa’s mid-level credit card) or Electron (a Visa debit card that cannot be overdrawn – this card is not available in the United States), then the interchange rate for a secure ecommerce transaction is 1.44%.

If a customer uses a Visa Signature or Visa Premium (higher spending limit, cardholder benefits) card, then that interchange rate is 1.80%. For Visa Infinite, a card offered to cardholders with a high net worth that comes with a range of luxury benefits, the rate is 1.97%. Finally, the rate for a commercial Visa card is 2.00%.

Card Type Rate
Visa Classic/Visa Gold/Visa Electron 1.44%
Visa Signature/Visa Premium 1.80%
Visa Infinite 1.97%
All Commercial Visa Products 2.00%

It is useful to be aware of these rates, particularly if you run an online business that sells mostly to international consumers. Similarly, it is recommended that you take some precautions to protect cardholders from fraud; e.g., make sure that your transactions are secure according to Visa’s rules and regulations so that these rates don’t increase even more.