In the wake of the Durbin Amendment, merchants to face new fees from Visa, as the credit card company lowers transaction rate.
Visa Chief Executive Joseph Saunders, in a conference call with analysts, said the payment processor would introduce a network participation fee in the U.S. for all of its debit, credit and prepaid card services, Reuters reported.
Visa also plans to lower the variable rate charged for transactions in advance of new fee caps that take effect later this year as part of the 2010 Dodd-Frank financial reform law.
The participation fee will be based on a merchant’s size and number of locations. He also said the new fees did not rule out future price changes.
The new program comes as Visa reported better-than-expected fiscal third quarter results, with a quarterly profit increase of 40% and plans to buy back an additional $1 billion in shares over the next year.