2 PAYMENT METHOD PROFILES: CARD
Debit Card Fees by Country
Unregulated Markets
2.50%
2.00%
Regulated Markets
1.50%
1.00%
0.50%
0.00%
Mexico 2023 Debit
Canada 2023 Debit
Australia 2025 Debit
Brazil 2022 Debit
China 2023 Debit
EU-12 2022 Debit
New Zealand 2023 Debit
UK 2022 Debit
USA 2024 Debit
Interchange Network Fee Acquirer Fee MSC
Graph 2.14
Network-Set Fees There are two typical fees set by the four-party card networks: interchange and network fees. Interchange fees are typically the largest portion of the merchant service charge, even in markets where interchange fees are capped. In addition, network fees, set and received by the networks, have trended upward in several global markets. In this section we review the different features of network-set fees and discuss how these considerations may differ by market or merchant-type. Interchange Caps In dozens of countries, interchange fees are capped by regulatory authorities. Despite the simplicity of a cap, however, there are some cost complexities that merchants still need to navigate. The following features may influence the impact of an interchange cap for retailers: • Card Type
• Structure of Interchange Cap • Regulated Issuer Coverage • Transactions in Scope • Voluntary Commitments v. Interchange Caps Card Type
In some markets, regulators have introduced separate interchange caps on credit, debit, and prepaid cards. For example, in New Zealand, there are interchange caps on credit and debit cards for international and domestic transactions, while prepaid cards remain unregulated. In other markets, the caps will depend on whether the card is commercial or consumer, such as in Europe, where only consumer cards are regulated in Europe.
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