Article 2.

Changes to Support Interchange

Fee Amounts in BASE II Draft Data
Records

Elena Moliterno

©2022 Visa. All rights reserved. Visa Confidential 1

Notice of confidentiality
This presentation is furnished to you solely in your capacity as a customer of Visa Inc. and/or a
participant in the Visa payments system. By accepting this presentation, you acknowledge that the
information contained herein (the “Information”) is confidential and subject to the confidentiality
restrictions contained in Visa’s operating regulations and/or other confidentiality agreements,
which limit your use of the Information. You agree to keep the Information confidential and not to
use the Information for any purpose other than in your capacity as a customer of Visa Inc. or as a
participant in the Visa payments system. The Information may only be disseminated within your
organization on a need-to-know basis to enable your participation in the Visa payments system.
Please be advised that the Information may constitute material nonpublic information under U.S.
federal securities laws and that purchasing or selling securities of Visa Inc. while being aware of
material nonpublic information would constitute a violation of applicable U.S. federal securities
laws.

©2022 Visa. All rights reserved. Visa Confidential 2

Article 2.4
Changes to Support Interchange Fee Amounts in BASE II Draft Data Records

Key Details
Regional Impact About This Change
Acquirers: Issuers: Mandatory
✓ AP ✓ AP
Testing Available
✓ CEMEA ✓ CEMEA
✓ Europe ✓ Europe Activation
✓ LAC ✓ LAC • Issuers and Acquirer will be systematically
activated to support the Visa calculated
interchange fee amount

Effective
CPD 14 October 2023
©2022 Visa. All rights reserved. Visa Confidential 3
Article 2.4
Changes to Support Interchange Fee Amounts in BASE II Draft Data Records

Business Summary
• Purpose
The Visa calculated interchange fee amount is an existing field available in settled transactions.
Currently, acquirers and issuers in AP, CEMEA, Europe and LAC regions need to subscribe to receive this
information.
With this change, acquirers and issuers will no longer need to subscribe to receive the information in
eligible transactions.
• Benefits and Reason Why
The field has been available since 2003 to assist clients with transaction-level reconciliation. The
information is already systematically available for clients in the Canada and U.S. regions.
The current subscription requirement is susceptible to human error and can be a constraint for clients that
need to request configuration changes for their account ranges and acquiring identifiers.

©2022 Visa. All rights reserved. Visa Confidential 4

Article 2.4
Changes to Support Interchange Fee Amounts in BASE II Draft Data Records

Mandatory Technical Changes

Visa will implement changes to populate the Visa calculated interchange fee amount and
interchange fee sign in existing fields for eligible purchase, credit voucher, cash
disbursement, account funding , original credit and reclassification advice transactions:

— TC x5, TC x6, TC x7 BASE II draft data transactions

• Interchange Fee Amount in TCR 5 —Payment Service Data, positions 92-106

• Interchange Fee Sign in TCR 5 —Payment Service Data, position 107
— TC 04 —Reclassification advice transactions1
• Interchange Fee Amount in TCR 9 — Reclassification Advice, positions 125-139
• Interchange Fee Sign in TCR 9 — Reclassification Advice, positions 140

(1) Reclassification advices are a configuration option, and this is not changing with this article.

©2022 Visa. All rights reserved. Visa Confidential 5

Article 2.4
Changes to Support Interchange Fee Amounts in BASE II Draft Data Records

Mandatory Technical Changes (cont.)

Interchange Fee Amount in TCR 5 —Payment Service Data

Field Name
Format Position Length Format Description
Contents
Interchange 92-106 15 Unpacked This field will specify the interchange / client to client fee
Fee Amount Numeric amount calculated by Visa for this transaction. The field is
right justified, with six decimals implied.
Outgoing: This field must contain zeros. This field will be
populated by the VIC.
Incoming: This field will contain the interchange fee amount
assessed on this transaction by Visa.

Interchange 107 1 Alphanumeric This field will specify if the interchange fee amount is a credit
Fee Sign or debit for the receiving Institution. Valid values are:
C = Credit
D = Debit
Outgoing: This field must contain spaces. The VIC will insert
the valid value.

©2022 Visa. All rights reserved. Visa Confidential 6

Article 2.4
Changes to Support Interchange Fee Amounts in BASE II Draft Data Records

Mandatory Technical Changes (cont.)

Interchange Fee Amount in TC 04, TCR 9 —Reclassification Advice Format

Format
Field Name Position Length Format Description
Contents
Interchange 125-139 15 Unpacked This field will specify the interchange / client to client fee
Fee Amount Numeric amount calculated by Visa for this transaction. The field is
right justified, with six decimals implied.
The VIC will insert the valid value.

Interchange 140 1 Alphanumeric This field will specify if the interchange fee amount is a credit
Fee Sign or debit for the receiving Institution. Valid values are:
C = Credit
D = Debit
The VIC will insert the valid value.

©2022 Visa. All rights reserved. Visa Confidential 7

Article 2.4
Changes to Support Interchange Fee Amounts in BASE II Draft Data Records

Testing and Activation

— Testing
Testing is available. Use the Global Testing and Activation Questionnaire to request testing.

— Activation
Effective CPD 14 October 2023, Issuers and Acquirers in AP, CEMEA, Europe and LAC regions will be
systematically activated to support the Visa calculated interchange fee amount under Article 2.4

©2022 Visa. All rights reserved. Visa Confidential 8

Article 2.4
Changes to Support Interchange Fee Amounts in BASE II Draft Data Records

Frequently Asked Questions

• Can an Issuer or Acquirer opt out of these changes?
— No, issuers and acquirers cannot opt out of these changes. The configuration option will be removed.

• Can an Issuer or Acquirer opt to receive the interchange fee amount sooner than October 2023?
— Yes, this is an existing field currently available as a configuration option. Contact your client support
representative to request a change to your configuration options.

©2022 Visa. All rights reserved. Visa Confidential 9

Article 2.4
Changes to Support Interchange Fee Amounts in BASE II Draft Data Records

Key Points and Dates

— Effective CPD 14 October 2023, Visa will populate the Visa calculated interchange fee amount and
interchange fee sign in eligible transactions

— Acquirers and issuers in the AP, CEMEA, Europe, and LAC regions must modify their systems to
support the existing Visa calculated interchange fee amount in the BASE II Draft Data, TCR 5 record

— Acquirers in the AP, CEMEA, Europe, and LAC regions that receive the BASE II Reclassification Advice
TCR 9 record must modify their systems to support the existing Visa calculated interchange fee
amount

©2022 Visa. All rights reserved. Visa Confidential 10

©2022 Visa. All rights reserved. Visa Confidential 11