In the U.S., CMSPI has identified the average interchange fee cost difference between Card-Present and Card-Not-Present transactions was 21bps* for credit cards and 58bps for debit cards in 2023.
CP AND CNP AVERAGE INTERCHANGE FEES
2.5%
CARD-PRESENT (CP) This generally refers to a transaction where the customer has dipped, swiped, or tapped a card at a physical point-of-sale machine. CARD-NOT-PRESENT (CNP) This generally refers to transactions made via a website or mobile application. There are some instances of mobile phones being tapped at the point-of-sale where the card networks interpret the transaction as card-not-present.
2.0%
Worldpay numbers suggest that ecommerce as a share of total commerce in the U.S. increased from 9% in 2019 to 15.4% in 2023 . Like-for-like, this increased interchange fees by an estimated $2.4 billion for U.S. merchants in 2023. 4,5
1.5%
1.0%
0.5%
0.0%
U.S.
Canada
Australia
Basis points (bps): one hundredth of one percent
Credit CP Average
Credit CNP Average
Source: CMSPI estimates and analysis 4 Kansas City Fed, CMSPI estimates
Page 5
5 This is based on 2022 fee differentials between CP and CNP transactions and does not include the effect of, for example, incremental digital fee network and interchange fee increases during the time period between 2019 and 2022,
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