Interchange Caps Can Vary
While various approaches can yield substantial savings for merchants, none can be deemed superior or inferior as each possesses its own advantages, risks, and limitations.
Date of Passage
Cost vs. Competition Methodology
Jurisdiction
Credit
Debit
2015
0.3%
0.2%
Competition
EU
0.05% + $0.21 plus $0.01 (fraud prevention adjustment)
-
2010
Cost
U.S.
1.4% weighted avg; for SMBs - 0.95% (in-store) and reduction of 10 basis pts (online) 1
-
-
Canada
2018, 2023
Mexico
2006
1.91%
1.15% max MXN 13.50 (~$0.73)*
Competition
2022
-
Brazil
0.5%
Cost
Chile
2021
1.14% (0.8% in Oct 2024)
0.5% (0.3% in Oct 2024)
Competition
AUD 0.08 (~$0.05) weighted avg ($0.10 or 0.2% for individual transactions)
0.5% weighted avg (0.8% for individual transactions)
Australia
2003
Cost
2016
China
0.45%
0.35%
-
0.9% (POS/online), 0.8% (QR code); for SMBs 0.4% POS/ online, 0.3% (QR code)
2017
-
India
Competition
1. This cap is a voluntary commitment between Visa, Mastercard, and the Department of Finance that will only apply until May 2025. Additional interchange cap restrictions apply for eligible small businesses as of fall 2024. * Exchange rate as of 7/26/2024
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