Visa has announced plans to modify its ATM interchange fees for its Plus network, effective Oct. 5, 2005.
According to a recent bulletin sent to its members, Visa is expected to lower the interchange for transactions conducted at what it deems "lower functionality, lower cost machines." Transactions at these machines will be termed "Tier 2" interchange.
Interchange at other machines deemed "Tier 1" will remain the same.
According to the bulletin, new Tier 2 rates will be a nickel to a dime less than current rates for the most common ATM transactions. The new rate for deposits will be 40 cents rather than the current 50 cents. Both balance inquiries and balance transfers will be 20 cents rather than the current 25 cents.
According to the bulletin: "The new ATM interchange fees will ensure that ATM deployers whose portfolios offer generally greater functionality and security, a higher level of customer service, and are burdened with additional costs to ensure they comply with regulatory requirements, receive higher interchange reimbursement fees."
According to a Visa spokesperson, Visa intends to release more specific criteria for the Tier 1 and Tier 2 designations in December.
The bulletin reads: "Institutions that deploy ATMs that comply with regulatory requirements, support best business and security practices, while providing consumers greater functionality, wil receive the current level of ATM Interchange reimbursement fee (Tier 1).
