Most in-person merchants will qualify for Visa’s CPS Retail rate structure. CPS stands for “Custom Payment Service”. The CPS classification is typically known as the best basic rate structure offered by Visa, and CPS requirements are often the “minimum” qualification requirements for more advanced interchange rates. Read all about CPS here. In a nutshell – you have to first qualify for CPS rates before other more advantageous rate structures will apply. The “CPS Retail” category encompasses traditional consumer credit cards, as opposed to business/purchasing cards. Barring a few exceptions, most merchants are able to receive this interchange rate. Below are the basic qualifications, plus you’ll see each type of card that’s eligible for CPS rates, along with the associated potential downgrade:
- Magnetic stripe, contactless, or chip data read, obtain customer’s signature.
- Authorize and settle within 1 day.
- Obtain and pass 1 valid electronic authorization.
- When processing a Non-PIN debit transaction the authorization and settlement amount must match. Taxicab & Limousines (MCC 4121), Bars & Taverns (MCC 5813), Beauty & Barber Shops (MCC 7230), Health & Beauty Spas (MCC 7298) are exempt from transaction amount tolerance.
What are the rates?
See the below cards types which can qualify for retail rates
CPS Rewards 1 - 1.65% + $0.10
Downgrade (for keyed): CPS Rewards 2, 1.95% + $0.10/txn
Downgrade (any other reason): EIRF, 2.30% + $0.10/txn
Signature / Preferred / Infinite - 2.10% + $0.10
Downgrade (for keyed): Signature Preferred CNP, 2.40% + $0.10/txn
Downgrade (any other reason): Standard, 2.95% + $0.10/txn
Regulated Debit - 0.05% + $0.22
Downgrade: This card type does not downgrade.