Visa Raises High-Risk Registration Fee: What to Know

On April 1, 2024, Visa’s yearly registration fee for high-risk merchants will increase from $500 to $950. In addition to this change, specific high-risk merchants will be charged 10 cents per transaction and 10 basis points for volume processed.

Merchants, particularly those categorized as high-risk, face an environment where payment processing comes with hefty fees. To protect their bottom line, they must take decisive action to mitigate these impacts.

What Is the Visa High-Risk Registration Fee?

Visa and other card networks like Mastercard have specific requirements for high-risk businesses to manage the increased risk associated with these businesses. One of those requirements is a high-risk fee that certain merchants must pay to process credit cards on Visa or MasterCard’s network.

While the registration fee applies to all high-risk merchants, the transaction fee will affect specific merchants. The following categories will be affected:

• Adult transactions
• Dating services
• Betting (lottery tickets, casino gaming chips, off-track betting, wagers and racetracks, and games of chance to win prizes of monetary value.

 Note: This adjustment applies solely to Visa, while MasterCard’s rate remains the same at $500.

What Should Merchants Do Next?

Merchants falling under the affected categories should assess the financial implications they may face from this fee change. Merchants may even want to consider adjusting their prices to offset any financial challenges.

Your payment processor can guide you in managing any adjustments that merchants may need to make to their payment processing setup. Depending on the impact on profitability, merchants should also explore alternative payment processing solutions or negotiate with their current payment processors for more favorable terms.

Additionally, ensuring that a business has the right Merchant Category Code (MCC) is central to managing both risk and revenue in payment processing. Discuss with your merchant service provider if your business is accurately classified and if it will be affected by Visa’s high-risk fee change.

ISOs & MSPs

If you are an ISO or MSP that has a portfolio of merchants, it’s important to note that as merchants expand their businesses, they may add or remove products and services, altering their risk and revenue profile. Therefore, regularly monitoring the merchants you sign on for merchant accounts is important in ensuring compliance and reducing unnecessary fees.

PaymentCloud Can Help

With years of high-risk merchant account experience, PaymentCloud can assist merchants in reevaluating their fee structure and terms. Our team of experts provides personalized guidance, helping merchants explore alternative payment processing solutions and negotiate with current providers to secure more favorable payment processing rates.

Don’t let Visa’s fee changes catch you off guard. Contact PaymentCloud today for a rate review and discover how we can help your high-risk business thrive!