Avoiding Visa’s Most Costly Downgrade
Have you ever seen “Electronic Interchange Reimbursement Fee” (EIRF) marked next to a transaction on your statements? Many of us see the word reimbursement and get excited. It sounds like we’re getting money back, doesn’t it? Well, we hate to break it to you, but that is not the case.
EIRF is actually an interchange surcharge that Visa adds for certain downgraded transactions. (As if a card brand would actually reimburse a merchant, right?) In reality, EIRF increases your discount rate somewhere between .45% and .76%, with the exact amount depending on your merchant type and other factors.
You can avoid these costly downgrades by:
Implementing these few tips will help your organization avoid the costliest of Visa’s downgrades. The tips will also prevent many Standard Electronic Interchange Reimbursement Fee (SEIRF) interchange downgrades, which are charged by both MasterCard and Visa, and can add as much as 3% to your rate.
Shift4’s resolute independence gives us the freedom to share this information with you. We don’t profit from your downgrades, and we have no financial ties to banks, processors, or card brands that do. We’re merchant advocates, and that means we only succeed when you do.