Effective 4/1/12 Visa began assessing a new fee to merchants that process certain Visa debit card transactions. The new fee, known as the transaction integrity fee (TIF), is in addition to the fees already being assessed to the merchants. The TIF is $.10/transaction – and also results in a downgrading of the Visa debit card transaction. A downgraded transaction results in an increased interchange rate and thus a more costly transaction.
The TIF is only assessed to card not present (CNP) transactions. A CNP transaction is defined as any transaction where the debit card is not swiped. This would include all internet e-commerce transactions and hand-keyed transactions. To avoid the TIF, merchants can capture and transmit address verification service (AVS) info. AVS info in the form of a zip code is sufficient to meet the requirement and avoid the fee.
Departments are encouraged to review the method of processing credit/debit card transactions. It is also recommended that departments review their monthly merchant statements to evaluate the potential financial impact of the new TIF fee. Please contact your campus/unit IT position of authority if you have additional questions regarding the new fee and possible solutions.