Market Overview

Visa Fees To Rise In The New Year

Visa Fees To Rise In The New Year

Visa Inc (NYSE: V) is expected to raise some of its fees in 2017. According to, Visa is set to increase its "misuse of authorization" and "zero limit" fees starting January 1, 2017.

As a result of the fee increase, some merchants are expected to see relative rate increases. The amount of these fee increases were not specified.

Misuse Authorization Fee

This fee is applied to authorized transactions that are not settled or reversed within a specified time frame. "Card present transactions" that have been submitted in error or canceled must be reversed within 24 hours, and reversals must be processed within 72 hours to avoid a fee of $.045/occurrence. "This fee is in response to the growing usage of $1.00 authorizations by online companies such as gateways and other payment service providers on behalf of merchants," according to KBW analysts.

Related Link: Q3 Could Be Quite The Catalyst For PayPal

Zero Floor Limit Fee

The Zero Floor Limit fee occurs when settled transactions do not match approved authorization. This incurs a $0.10 fee.

The amount changes were not specified. "Ultimately we believe the upside to Visa shares will be driven by the opportunities presented from the Visa Europe and Costco/USAA deal wins," said KBW.

KBW has an Outperform rating on Visa with a $99 price target.

At last check, Visa was down 0.46 percent at $81.88.

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Latest Ratings for V

Sep 2019MaintainsBuy
Aug 2019MaintainsNeutral
Jul 2019MaintainsOverweight

View More Analyst Ratings for V
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