Summary of Card Brand Changes Effective January 2025
Typically, twice a year – in April and October – Visa, Mastercard, Discover, and AmEx release updates to their programs and fee structures. However, the card brands have adjusted their approach to now present some fee changes made at other times of the year outside of the traditional announcements.
For your convenience, below is a summary of the January 2025 changes that will have the most impact on merchants. A complete list of the card brand changes can be accessed here.
As always, Wind River Payments believes in transparency of all association fees applicable to merchant processing costs and passes through these new fees to our customers with no mark-ups or changes.
Visa Updates
1. Increase in Misuse of Authorization System Fee for the US Region
Visa will raise the Misuse of Authorization fee for the US Region from $0.09 to $0.15 for transactions that are not cleared or reversed within the required timeframe. According to Visa, the time window varies by industry. For example:
- Lodging, Vehicle Rental, Cruise Line Merchants – 30 days from day of estimated authorization approval
- Rental Merchant Categories – 10 days from day of estimated authorization approval
- Cardholder-initiated Transactions in a card-not-present environment – 10 days from day of estimated authorization approval
- Card-Present Transactions – 5 days from day of estimated authorization approval
To avoid the fee, businesses should consider the following best practices:
- Process estimated, incremental authorizations and authorization reversals according to Visa’s Rules and technical requirements
- Use the Visa Account Verification Service rather than $1.00 “test transactions” in certain circumstances
- Reverse any transactions that are in error or have been canceled by the cardholder within 24 hours
2. Visa Update to When the Digital Commerce Services Fee Applies
Previously, Visa assessed a Digital Commerce Services Fee (DCSF) on card-not-present transactions that settled. Beginning in January 2025, the DCSF fee will be based on authorized transactions rather than clearing and settlement. This change is reflected where those services are provided. There is no change to the amount of the fee itself.
3. Increase on the Visa BASE II Transmission Fee
The Visa BASE II Transmission fee for all Visa transactions processed through the BASE II system is increasing from $0.0018 to $0.0025.
MasterCard Updates
1. MasterCard Revised Excessive Authorization Attempts TPE Program for the US Region
Mastercard is adjusting the rate for the Excessive Authorization Attempts fee in the TPE program in the US region. The Excessive Authorization Attempts fee is currently assessed weekly for each authorization after 10 previously declined attempts on the same card and same card acceptor identification number within a 24-hour period. This fee is increasing to $0.5000 from previous rate of $0.3000.
2. Pricing for the Mastercard US Enterprise Solution Wholesale Travel Program
Mastercard introduced the Global Wholesale Travel Transaction Program for all travel agents to pay travel suppliers for secondary payments. The pricing applies to wholesale travel transactions that are acquired anywhere in the world initiated with virtual Mastercard account numbers. The rate is 1.57% + $0.00.
Neither Discover or AmEx announced changes to their fees or policies.