Visa Inc. (NYSE:V) has announced that it will delay expected US interchange changes and fees up to April next year. The company has cited disruptions due to the coronavirus pandemic for the postponement of the changes.
Similarly, the company has confirmed a six-month delay of the EMV liability shift for gas owners for them to upgrade payment terminals so that they can support contactless and chip payments. Also, the company has indicated that it will waiver coronavirus-linked dispute fees.
Visa postpones implementation of interchange fee changes
Initially, the package of interchange fee changes, which is the company’s first significant adjustment ion its interchange program, was expected to take effect in April. The adjustment of the package included an increase in online transactions as well as reductions for supermarkets and retail stores.
At the beginning of March, Visa indicated that it was planning to derail the implementation by at least three months following distress that most merchants were undergoing because of the coronavirus pandemic. Besides Visa, other companies such as American Express Co. (NYSE:AXP) Discover Financial Services (NYSE:DFS) and MasterCard Inc. (NYSE:MA) also announced delays for implementation of the panned pricing changes until April 2021.
EMV liability shift for fuel pumps off up to April 2021
In a blog post, the company indicated that the only exempted changes are for the reduction in supermarket interchange fees, which will go on as initially planned. The EMV liability shift for gasoline stations, which was expected to be implemented in October, has also been pushed forward.
The postponement comes following calls from gasoline retailers, convenience stores as well as merchant groups to Visa and other card providers to delay the expected liability shift changes. This is because the coronavirus driven downturn has deepened problems they were experiencing in the upgrading of the fuel pumps to take contactless payments and chip cards.
Visa stated through the post that they believe the EMV will be the best means of reducing fraud, and the changes will take effect in April next year. They acknowledged the supply chain problems that have affected fuel pump owners from upgrading.