Visa introduced the Transaction Integrity Fee (TIF) in April 2012. The TIF is $0.10 per transaction and will be assessed on debit and prepaid card transactions that do not qualify for Custom Payment Service (CPS). The TIF is charged in addition to the applicable interchange fee and discount rate.
This means that regulated debit transactions will still receive the regulated interchange rate (0.05% + $0.22), but they will be subject to the TIF if they fail to qualify for a CPS program. For example, a transaction that qualifies for Standard Debit – Exempt or Regulated – will be assessed an extra $0.10 for the TIF.
Merchants can follow best practices for processing credit cards to maximize their chances of qualifying for CPS, which can help them qualify for better interchange rates and avoid the Transaction Integrity Fee. Here are some common reasons for incurring the TIF and how to avoid it:
Reason for Being Assessed the TIF
How to Avoid the TIF
|Transactions are not settled in a timely fashion (typically 2 days)||Settle (batch out) your terminal every day|
|Address verification (AVS) is not requested for manually entered transactions or card not present transactions||Request address verification (AVS) on all key entered and card not present transactions|
|E-commerce transactions that do not include the order number or customer service number||Make sure the shopping cart or payment gateway software can provide the order number and customer service number|
|Additional data is not provided for hotel/lodging transactions||Lodging merchants should include the check-in/check-out dates and folio numbers|