Network Updates

All Spring 2024 Network Updatesanchor

SPRING 2024 RELEASE GUIDEanchor

The card networks (Visa, Mastercard, Amex, Discover, etc.) introduce and make changes to their operating rules and mandates throughout the year. Many of these changes come twice per year—in spring and fall.

These network updates typically include fee introductions or fee changes, new mandates, new features, or updates to existing features. The changes can be broad in nature and may include updates such as mandates to comply with new regulations; implementing new fees; or requiring merchants to use schemes like 3DS 2.0 to help reduce fraud.

While many of the updates require no action for merchants, some do require integration changes or force adoption of services. Additionally, some of the updates carry new or changed fees.

PayPal Braintree teams have worked together to identify the key updates for Spring 2024, and we have provided information about these updates below. We have called out the type of update (fee change, mandate, new feature/update), which network the update comes from, and the relevant market(s).

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KEY SPRING 2024 NETWORK RELEASESanchor

(click below to jump to specific update)

Scheme

Name (click to jump)

Type

Geographic Impact

Visa

Processing Integrity Fees

Fee Change

CEMEA, CA, APAC, EU, LAC

Modifications to Certain US Interchange Rates and Programs

Fee Change

US

Intra-Europe EEA Commercial Interchange Fees

Fee Change

EU

Introduction to CVV2 Pricing in Canada

Fee Change

Canada

Updates to Visa Secure Data Fields Mandate

 Feature Change

Global

Resolve Online Pricing Changes for Europe

Fee Change

EU

Non-domestic Currency Settlement Fee

Fee Change

EU

Mastercard

Expanding Digital Enablement in the US

Fee Change

US

Revised Excessive Authorization Attempts

Fee Change

Canada

CVV2 Compliance Requirements

Feature Change

APAC

Extending Network Access and Brand Usage Fee

Fee Change

US

Revising Acquirer Brand Volume Fee

Fee Change

US

All Mastercard Network Updatesanchor

What is the Expansion of the Digital Enablement Fee in the US mandate?anchor

FEE CHANGE | Mastercard | US

Back to Overview Table

Effective Date: 15 April 2024

Merchant Impact

From 15 April 2024, Mastercard will revise the pricing for the Digital Enablement Fee (DEF) and charge a fixed rate of $0.40 USD for card-not-present (CNP) transactions greater than or equal to $1000 USD. The Digital Enablement Fee of 0.02% (2 basis points) with a minimum of $0.20 USD remains for transactions less than $1000 USD.

What is the Revised Excessive Authorization Attempts (CA) mandate?anchor

FEE CHANGE | Mastercard | CA

Back to Overview Table

Effective Date: 1 April 2024

Merchant Impact

From 1 April 2024, Mastercard will revise the threshold for the Excessive Authorization Attempts Transaction Processing Excellence (TPE) program in Canada, introducing a threshold of 35 declined attempts on the same account number, at the same card acceptor, and for the same amount within a 30-day period.

note

The first billing for the new Canada TPE threshold will occur on 5 May 2024.

To avoid the excessive authorization attempts TPE fees, Mastercard is recommending that acquirers immediately stop sending authorizations on the same card and same card acceptor ID, within a 24-hour period after receiving 10 consecutive decline responses, as well as to stop sending authorizations on the same card, same card acceptor, for the same amount, within a 30-day period after receiving 35 decline responses.

The applicable fee will be 0.50 USD per identified declined transaction. To avoid TPE fees, merchants should review their statements to identify TPE charges then adjust behavior to avoid these fees.

What is the CVV2 Compliance Requirements mandate?anchor

FEATURE CHANGE | Mastercard | APAC

Back to Overview Table

Effective Date: 8 April 2024

Merchant Impact

Mastercard will be eliminating the Card Verification Value 2 (CVV2) verification for both card-on-file (COF) and guest checkout experiences in the Asia Pacific region. This change will apply to all Mastercard Digital Enablement Service (MDES) tokenized transactions. By leveraging tokenization and approved authentication methods available through the EMV 3-D Secure and Token Authentication Framework (TAF), consumers can complete transactions securely without the need for CVV2 verification.

No merchant action is immediately required, but they should plan for when issuers are ready to incorporate the change.

What is the Extending Network Access and Brand Usage Fee change?anchor

FEE CHANGE | Mastercard | US

Back to Overview Table

Effective Date: 15 April 2024

Merchant Impact

From 15 April 2024, Mastercard is extending the Network Access and Brand Usage fee (NABU) for Non-domestic Authorizations, Collection-only, and Refund/Credit transactions in the United States, increasing the fees for US merchants who process transactions from non-US issued cards to $0.0295 per transaction. NABU fees—sometimes also referred to as card association fees or card brand fees—are the fees associated with processing a transaction with a card network like Mastercard.

Table 8 – Extending Network Access and Brand Usage Fee

 

Merchant Country is U.S.

Issuer Country is U.S.

$0.0195

Issuer Country is non-U.S.

$0.0295

What is the Revising Acquirer Brand Volume Fee change?anchor

FEE CHANGE | Mastercard | US

Back to Overview Table

Effective Date: 15 April 2024

Merchant Impact

From 15 April 2024, Mastercard will introduce two enhanced tools (Merchant Risk Dashboard; Small Business Credit Analytics) designed to streamline acquirers’ efforts to identify and mitigate potential risks during both the initial onboarding process and daily operations. In addition, Mastercard will raise the Acquirer Brand Volume fee by 0.01% from 0.13% to 0.14%. This updated fee will apply to all Mastercard transactions.

All Visa Network Updatesanchor

What are the Visa Processing Integrity Fees?anchor

FEE CHANGE | VISA |CEMEA, CA, AP, EU, Latin America and the Caribbean

Back to Overview Table

Effective Date: 1 April 2024 (APAC excluding Japan); 25 April 2024 (CEMEA, EU, LAC excluding Brazil and Chile); 25 May 2024 (Canada)

Merchant Impact

Visa will begin compliance monitoring for the Processing Integrity Program with the introduction of 2 new fees:

  • Misuse of Authorization System: assessed to approved or partially approved auth transactions that cannot be matched to a clearing transactions or authorization reversal.
  • Unmatched Clearing: assessed on clearing transactions that cannot be matched to previously approved or partially approved auth transactions.

Region 

PreviousEffective Date 

Updated Effective Date

FeeRate(pertransaction) 

CEMEA 

10/1/23

4/25/24 

$0.05

Canada

1/25/24

5/25/24 

$0.05

APAC (excluding Japan)

4/1/24

4/1/24 

$0.05

EU* 

7/1/23

4/25/24 

$0.01

LAC (excluding Brazil / Chile)

7/1/23

4/25/24

$0.05

*EU rate rises to $0.05 per transaction in July 2024.

What are the Modifications to Certain US Interchange Rates and Programs?anchor

FEE CHANGE | VISA | US

Back to Overview Table

Effective Date: 13 April 2024

Merchant Impact

Interchange adjustments based on Visa products used by the merchants' consumers. Merchants will see continued interchange savings when transactions are tokenized. Visa will modify interchange rates select transactions (see Table 3).

Table 3 – Visa modifications to interchange rates for select transactions

Interchange Program

Product

Existing Interchange Rate

New Interchange Rate(Effective CPD 13 April 2024)

Healthcare

Visa Traditional

1.53% + $0.05

1.52% + $0.10

Visa Traditional Rewards

Visa Signature

Visa Infinite (Non-Qualified)

Visa Signature Preferred

2.40% + $0.10

2.38% + $0.15

Visa Infinite (Qualified)

2.40% + $0.10

2.39% + $0.15

Healthcare Tokenized

Visa Traditional

1.43% + $0.05

1.42% + $0.10

Visa Traditional Rewards

Visa Signature

Visa Infinite (Non-Qualified)

Visa Signature Preferred

2.30% + $0.10

2.28% + $0.15

Visa Infinite (Qualified)

2.30% + $0.10

2.29% + $0.15

Education

Visa Traditional

1.53% + $0.05

1.52% + $0.10

Visa Traditional Rewards

Visa Signature

Visa Infinite (Non-Qualified)

Visa Signature Preferred

2.25% + $0.10

2.23% + $0.15

Visa Infinite (Qualified)

2.25% + $0.10

2.24% + $0.15

Education Tokenized

Visa Traditional

1.43% + $0.05

1.42% + $0.10

Visa Traditional Rewards

Visa Signature

Visa Infinite (Non-Qualified)

Visa Signature Preferred

2.15% + $0.10

2.13% + $0.15

Visa Infinite (Qualified)

2.15% + $0.10

2.14% + $0.15

Real Estate

Visa Traditional

1.53% + $0.05

1.52% + $0.10

Visa Traditional Rewards

Visa Signature

Visa Infinite (Non-Qualified)

Visa Signature Preferred

2.25% + $0.10

2.23% + $0.15

Visa Infinite (Qualified)

2.25% + $0.10

2.24% + $0.15

Real Estate Tokenized

Visa Traditional

1.43% + $0.05

1.42% + $0.10

Visa Traditional Rewards

Visa Signature

Visa Infinite (Non-Qualified)

Visa Signature Preferred

2.15% + $0.10

2.13% + $0.15

Visa Infinite (Qualified)

2.15% + $0.10

2.14% + $0.15

Services

Visa Traditional

1.65% + $0.10

1.60% + $0.15

Visa Traditional Rewards

1.80% + $0.10

1.65% + $0.15

Visa Signature

1.95% + $0.10

1.90% + $0.15

Visa Infinite (Non-Qualified)

2.40% + $0.10

2.42% + $0.15

Visa Signature Preferred

1.95% + $0.10

1.90% + $0.15

Visa Infinite (Qualified)

2.40% + $0.10

2.42% + $0.15

Services Tokenized

Visa Traditional

1.55% + $0.10

1.50% + $0.15

Visa Traditional Rewards

1.70% + $0.10

1.55% + $0.15

Visa Signature

1.85% + $0.10

1.80% + $0.15

Visa Infinite (Non-Qualified)

2.30% + $0.10

2.32% + $0.15

Visa Signature Preferred

1.85% + $0.10

1.80% + $0.15

Visa Infinite (Qualified)

2.30% + $0.10

2.32% + $0.15

Travel

Visa Traditional

1.75% + $0.10

1.76% + $0.10

Visa Traditional Rewards

1.95% + $0.10

1.96% + $0.10

Visa Signature

2.25% + $0.10

2.26% + $0.10

Visa Signature Preferred

2.40 % + $0.10

2.42% + $0.11

Product 1

Visa Traditional

1.89% + $0.10

1.90% + $0.10

Visa Traditional Rewards

2.04% + $0.10

2.05% + $0.10

Visa Signature

2.05% + $0.10

2.06% + $0.10

Visa Signature Preferred

2.50% + $0.10

2.52% + $0.10

Product 1 Tokenized

Visa Traditional

1.80% + $0.10

1.81% + $0.10

Visa Traditional Rewards

1.95% + $0.10

1.96% + $0.10

Visa Signature

1.95% + $0.10

1.96% + $0.10

Visa Signature Preferred

2.40% + $0.10

2.42% + $0.10

I think the new rate here should be 2.52% [KV1]

What is the Intra-Europe EEA Commercial Interchange Fees Mandate?anchor

FEE CHANGE | VISA | EU

Back to Overview Table

Effective Dates: 13 April 2024

Merchant Impact

Visa will update intra-Europe EEA interchange fees for commercial cards. As a result of this change, ecommerce transactions will be aligned with Standard fee type. Merchants affected will be those processing the related card type and category:

Table 4 - Updated Intra-Europe EEA Commercial Interchange Fees

Product

Category

Fee Type

Interchange Fee

Visa Business Debit

General

Electronic Commerce

1.65%

Standard

Government Payments 1

Money Services 2

Electronic Commerce

1.65% (capped at EUR 1.50)

Standard

Charity 3

Electronic Commerce

1.65% (capped at EUR 0.50)

Standard

Visa Business Prepaid

General

Electronic Commerce

1.65% (minimum of EUR 0.35)

Standard

Government Payments 1

Money Services 2

Electronic Commerce

1.65% (minimum of EUR 0.35, capped at EUR 1.50)

Standard

Charity 3

Electronic Commerce

1.65% (minimum of EUR 0.35, capped at EUR 0.50)

Standard

Visa Business Debit

Visa Business Deferred Debit

General

Electronic Commerce

1.65%

Standard

Visa Platinum Business Debit

Visa Infinite Business Debit

General

Electronic Commerce

1.90%

Standard

Government Payments 1

Money Services 2

Electronic Commerce

1.90% (capped at EUR 1.50)

Standard

Charity 3

Electronic Commerce

1.90% (capped at EUR 0.50)

Standard

Vis Platinum Business Prepaid

Visa Infinite Business Prepaid

General

Electronic Commerce

1.90% (minimum of EUR 0.35)

Standard

Government Payments 1

Money Services 2

Electronic Commerce

1.90% (minimum of EUR 0.35, capped at EUR 1.50)

Standard

Charity 3

Electronic Commerce

1.90% (minimum of EUR 0.35, capped at EUR 0.50)

Standard

Visa Platinum Business Credit and Deferred Debit

Visa Infinite Business Credit and Deferred Debit

General

Electronic Commerce

1.90%

Standard

Vis Corporate 4,5

Visa Purchasing 6,7

General

Electronic Commerce

1.90%

Standard

1 Government Payments: Merchant Category Code (MCC) 9311—Tax Payments, MCC 9399—Government Services (Not Elsewhere Classified)

2 Money Services: MCC 6012—Financial Institutions—Merchandise, Services, and Debt Repayment; MCC 6211—Security Brokers/Dealers

3 Charity: MCC 6012—Charitable Social Service Organizations

4 There will be no changes to the interchange rates for the Small Market Expense (EX) commercial product subtypes.

5 There will be no changes to the interchange rates for the Large Market Enterprise (EN) commercial product subtypes.

6 Visa Purchasing acquirers may receive an additional interchange incentive of EUR 0.50 if they submit the transaction with additional data.

Effective CPD 13 April 2024

, the interchange incentive fee for additional data for Visa Purchasing with Fleet will be 0.30% (per below.)

7 There will be no changes to the Large Ticket Program

What is the Visa Introduction to CVV2 Pricing in Canada?anchor

FEE CHANGE | VISA | Canada

Back to Overview Table

Effective Date: 1 April 2024

Merchant Impact

Visa will introduce acquirer pricing for Card Verification Value 2 (CVV2) in Canada. Fee is $0.0025 USD per CVV2 match/no match result. The fee will not be charged when 3D Secure (3DS) is successful or when the transaction is a zero-amount account verification message.

Merchants who use CVV2 in Canada can expect to pay a fee. Merchants should adjust their strategy to avoid the fee (see Table 5 for fee details).

Table 5 – Card Verification Value Acquirer Fee (Canada)

Billing Line

Billing Line Description

Assessed To

Fee

2VAS70000

CVV2 – ACQUIRER FEE

Acquirer

$0.0025 USD per CVV2 match / no match result

What are the Updates to Visa Secure Data Fields mandate?anchor

FEATURE CHANGE | VISA | Global

Back to Overview Table

Effective Date: 12 August 2024

Merchant Impact

Effective 12 August 2024, Visa will recategorize three existing 3D Secure (3DS) data fields from "conditional" to "required." These fields are passed in the 3DS Authentication Request (AReq) and provide additional information to improve the quality of authentication requests and potentially drive authorization rate performance. While previously communicated that Visa was planning to recategorize twelve fields (see Table 7), Visa updated their guidance in early 2024, pushing the new effective date to August and reducing the number of required fields from twelve to five and then to just three (see Table 6).

Table 6 – Data Field Requirements by Device Channel

Browser

In-App / Software Development Kit (SDK)

Browser IP Address

Common Device Identification Parameters (Device IP Address)

Browser Screen Height

Browser Screen Width

These updated fields provide Visa's Access Control Server (ACS) additional information, potentially helping to drive authorization rate performance and improve frictionless checkout. Transaction processing will not be impacted, but merchants are strongly advised to provide these fields to ensure compliance with Visa's operating rules. Visa may introduce a compliance deadline at a later date and assess potential non-compliance fees. We will send further communications when and if that will happen.

Table 7 – No longer required Data Fields

Priority Data Fields

Requirement Status

Update from previous announcements

Browser IP Address 1

Mandatory (Browser)

No Update

Browser Screen Height 1

Mandatory (Browser)

No Update

Browser Screen Width 1

Mandatory (Browser)

No Update

Common Device Identification
Parameters (Device IP Address) 2

Mandatory (In-App)

No Update

Cardholder Billing Address City 3

Recommended

No Longer Mandatory

Cardholder Billing Address Country 3

Recommended

No Longer Mandatory

Cardholder Billing Address Line 1 3

Recommended

No Longer Mandatory

Cardholder Billing Address Postal Code 3

Recommended

No Longer Mandatory

Cardholder Billing Address State 3

Recommended

No Longer Mandatory

Cardholder Email Address

Recommended

No Longer Mandatory

Cardholder Name

Recommended

No Longer Mandatory

Cardholder Phone Number 4, 5

Recommended

No Longer Mandatory

1 Only for browser-based transactions

2 Only for SDK transactions

3 Except in markets where the billing address fields do not exist.

4 At least one phone number (work / home / mobile) is recommended.

5 Merchants are recommended to pass the Cardholder Phone Number and Cardholder Email Address fields for authentication, but merchants will be compliant if they only pass one of the two fields

What are the Visa Resolve Online Pricing Changes for Europe?anchor

FEE CHANGE | VISA | EU

Back to Overview Table

Effective Date(s): 1 April 2024

Merchant Impact:

Visa is updating pricing for their dispute tool, Visa Resolve Online (VROL) in Europe. Effective 1 April 2024, Visa will introduce new fees for Pre-arbitration with Qualified Remedy and Collaboration Requests between acquirers and issuers. Visa are also increasing the existing fees applicable for case filing and response submission (applicable to over 21-day timeframe).

The updated fees will be reflected in invoicing from May 2024. Some of these fees are passed to merchants in the event of a lost dispute, so merchants need to be aware of potentially higher dispute fees. In addition, Visa is increasing the fees for access to VROL, which would impact internal operational cost only.

What is the Non-Domestic Currency Settlement Fee mandate?anchor

FEE CHANGE | VISA | EU

Back to Overview Table

Effective Date: 1 April 2024

Merchant Impact

From 1 April 2024, Visa will increase the non-domestic settlement volume fee from 0.05% to 0.10%. This fee was introduced in 2022 and applies to merchants who process cross-border Visa payments in the EU and receive settlement in a currency different than the domestic currency of the acquirer (BIN or BIN range country).

The fee applies under the following conditions:

  • Transactions need to be identified as cross-border (intra-Europe or international)
  • The issuer chooses to settle the transactions with Visa (i.e., issuer settlement currency) in a different currency than the domestic currency of the Bank Identification Number (BIN) or BIN range country.
  • The acquirer chooses to settle the transactions with Visa (i.e., acquirer settlement currency) in a different currency than the domestic currency of the merchant country where the transaction is completed.

The fee applies to merchants operating in the European Economic Area (EEA), Andorra, Israel, Monaco, San Marino, Switzerland, United Kingdom (including Gibraltar) and Vatican City State.

note
  • A cross-border transaction is where the merchant country location is different than the issuer country location.
  • An intra-Europe cross border transaction happens when both the issuer and merchant country location are within the Visa Europe territory.
  • An international cross border transaction in this context is where the issuer country location is within the Visa Europe territory and the merchant country location is outside the Visa Europe territory and vice versa