Concept

Interchange reimbursement fees (IRF) are used as a balancing mechanism between the financial institutions involved in a transaction to help grow the payment system for the benefit of all participants. Generally, acquirers reimburse issuers for point-of-sale transactions, and issuers reimburse acquirers for cash and ATM transactions

UPI's current IRF rate structure includes rates that vary by acceptance region, transaction type, card type, card level and merchant category. The goal of UPI in setting IRF rate is to ensure wide-spread issuance and acceptance of UnionPay Cards.

IRF by Country

Italy

1.The domestic IRFs in Italy are shown below.

IRFs for POS/E-commerce/ MO/TO and Recurring Transactions

Card Product	MCCs	Category	Acquirer Pays Issuer
Consumer Card	Bill Payment and Utilities 4814, 4816, 4899, 4900 Professional Services and Membership Organizations 8062, 8211, 8220, 8241, 8244, 8249, 8299, 8675 Government Services 9211, 9222, 9311, 9399, 9402, 9405	Debit Card &Prepaid Card	0.2% Capped at EUR 0.07
		Credit Card	0.3% Capped at EUR 0.3
	Other MCCs	Debit Card &Prepaid Card	0.2%
		Credit Card	0.3%
Commercial Card*	Debit Card &Prepaid Card		EUR 0.6
	Credit Card		1.5%

* The commercial card pricing will take effect on May 7 2018

IRFs for ATM Transactions

Transaction	Acquirer Receives from Issuer
ATM Withdrawal	USD 1.375
ATM Inquiry	USD 0.25

2.Cross-border tractions with Unionpay cards issued within EEA (European Economic Area) countries and accepted in Italy will follow the EEA regional pricing shown below.

IRFs for POS/E-commerce/ MO/TO and Recurring Transactions

IRF by Card Type		Acquirer Pays Issuer
Consumer	Debit/Prepaid Card	0.2%
	Credit Card	0.3%
Commercial*	Debit/Prepaid Card	EUR 0.6
	Credit Card	1.5%

* The commercial card pricing will take effect on May 7 2018

IRFs for ATM Transactions

Transaction	Acquirer Receives from Issuer
ATM Withdrawal	USD 1.375
ATM Inquiry	USD 0.25

3.The IRFs for UnionPay cards issued outside of EEA (European Economic Area) countries and accepted in Italy will follow the international pricing shown below.

IRFs for POS, MO/TO and Recurring Transactions

Transaction Types	Acquirer Pays Issuer
POS Transactions	1.1%
Mo/To Transactions	1.5%
Recurring Transactions	1.1%

IRFs for E-Commerce Transactions

MCC	Acquirer Pays Issuer
Airport (4511) Education (8211,8220,8241,8244,8249,8299) Insurance (5960,6300)	1.15%
Other MCCs	1.2%

IRFs for ATM Transactions

Transaction	Acquirer Receives from Issuer
ATM Withdrawal	USD 1.375
ATM Inquiry	USD 0.25

Poland

1.Interchange Reimbursement Fees(IRFs)

(1)IRFs for cross-border transactions with Unionpay cards issued within EEA (European Economic Area) countries and accepted in Poland will follow the EEA regional pricing shown below.

IRFs for POS/E-commerce/ MO/TO and Recurring Transactions

IRF by Card Type		Acquirer Pays Issuer
Consumer	Debit/Prepaid Card	0.2%
	Credit Card	0.3%
Commercial*	Debit/Prepaid Card	EUR 0.6
	Credit Card	1.5%

* The commercial card pricing will take effect on May 7 2018

IRFs for ATM Transactions

Transaction	Acquirer Receives from Issuer
ATM Withdrawal	USD 1.375
ATM Inquiry	USD 0.25

(2)IRFs for UnionPay cards issued outside of EEA (European Economic Area) countries and accepted in Poland will follow the international pricing shown below.

IRFs for POS, MO/TO and Recurring Transactions

Transaction Types	Acquirer Pays Issuer
POS Transactions	1.1%
Mo/To Transactions	1.5%
Recurring Transactions	1.1%

IRFs for E-Commerce Transactions

MCC	Acquirer Pays Issuer
Airport (4511) Education (8211,8220,8241,8244,8249,8299) Insurance (5960,6300)	1.15%
Other MCCs	1.2%

IRFs for ATM Transactions

Transaction	Acquirer Receives from Issuer
ATM Withdrawal	USD 1.375
ATM Inquiry	USD 0.25

2.Service Fees(SFs)

(1)Service Fees(SFs) for cross-border transactions with Unionpay cards issued within EEA (European Economic Area) countries and accepted in Poland will follow the EEA regional pricing shown below.

SFs for POS /E-Commerce/ MO/TO and Recurring Transactions

For all UnionPay credit card transactions

Types	Acquirer Pays UPI
Acquirer Clearing Fee	EUR0.004
Acquirer Authorization Fee	EUR0.006
Acquirer Card Service Fee	0.011%
License Fee	0.001%

For all UnionPay debit/prepaid card transactions

Types	Acquirer Pays UPI
Acquirer Clearing Fee	EUR0.004
Acquirer Authorization Fee	EUR0.006
Acquirer Card Service Fee	0.005%
License Fee	0.001%

SFs for ATM Transactions

Transaction Type	Acquirer Pays UPI
ATM Withdrawal	USD 0.125
ATM Inquiry	USD 0.035

(2)SFs for UnionPay cards issued outside of EEA (European Economic Area) countries and accepted in Poland will follow the international pricing shown below.

SFs for POS / MO/TO and Recurring Transactions

Transaction Type	Acquirer Pays UPI
POS Transactions	0.1%
Mo/To Transactions	0.1%
Recurring Transactions	0.1%

SFs for ATM Transactions

Transaction Type	Acquirer Pays UPI
ATM Withdrawal	USD 0.125
ATM Inquiry	USD 0.035

SFs for E-Commerce transactions

MCC	Acquirer Pays UPI
Airport (4511) Education (8211,8220,8241,8244,8249,8299) Insurance (5960,6300)	0
Other MCCs	0.2%

Malaysia

In 2018, The Central Bank of Malaysia (Bank Negara Malaysia/BNM) required that all international card schemes adjust their domestic interchange rate for local credit card transactions in Malaysia, which will take effect on July 1, 2018.

The current domestic pricing in Malaysia is shown below.

1.Interchange Reimbursement Fees (IRFs)

Table-1: IRFs for Credit Card POS / E-commerce / MOTO / Recurring transactions

MCCs	IRFs (Acquirer Pays Issuer)
Petroleum (5541, 5542)	0.831% Max: MYR0.80
Government Services and Charity (9211, 9222, 9223, 9311, 9399, 9402, 9405, 8398, 8661)	0
Others	0.831%

Table-2: IRFs for Debit/Prepaid Card POS / E-commerce / MOTO / Recurring transactions

MCCs	IRFs (Acquirer Pays Issuer)
Petroleum (5541, 5542)	0.21% Max: MYR0.58
Government Services and Charity (9211, 9222, 9223, 9311, 9399, 9402, 9405, 8398, 8661)	0
Others	0.21% or 0.01%+MYR0.70 (whichever is lower)

2.Service Fees

Table-3: Service Fees for Credit Card transactions

Issuer pays UPI
Issuer Clearing Fee	0.048USD
Issuer Authorization Fee	0.066USD
Issuer Card Service Fee	0.020%
Issuer License Fee	0.004%
Acquirer pays UPI
Acquirer Clearing Fee	0.006USD
Acquirer Authorization Fee	0.006USD
Acquirer Merchant Service Fee	0.052%
Acquirer License Fee	0.004%

Table-4: Service Fees for Debit/Prepaid Card transactions

Issuer pays UPI (Max: 0.14 USD)
Issuer Clearing Fee	0.009USD
Issuer Authorization Fee	0.006USD
Issuer Card Service Fee	0.016%
Issuer License Fee	0.004%
Acquirer pays UPI
Acquirer Clearing Fee	0.006USD
Acquirer Access Fee	0.006USD
Acquirer Merchant Service Fee	0.052%
Acquirer License Fee	0.004%

Switzerland

Since there’s no domestic pricing in Switzerland, the IRF paid by the Swiss Acquirers shall follow the international pricing scheme shown below.

IRF for POS, Mo/To and Recurring Transactions

Transaction Types	Acquirer Pays Issuer
POS Transactions	1.1%
Mo/To Transactions	1.5%
Recurring Transactions	1.1%

IRF for E-Commerce transactions

MCC	Acquirer Pays Issuer
Airport (4511) Education (8211,8220,8241,8244,8249,8299) Insurance (5960,6300)	1.15%
Other MCCs	1.2%

IRF for ATM Transactions

Transaction	Acquirer Receives from Issuer
ATM Withdrawal	USD 1.375
ATM Inquiry	USD 0.25

Canada

1. Interchanges

IRF paid by the Canada Acquirers shall follow the international pricing scheme shown below.

IRFs for POS and Recurring Transactions

Transaction Types	Acquirer Pays Issuer
POS Transactions	1.1%
Recurring Transactions	1.1%

IRFs for E-Commerce transactions

MCC	Acquirer Pays Issuer
Airport (4511) Education (8211,8220,8241,8244,8249,8299) Insurance (5960,6300)	1.15%
Other MCCs	1.2%

2. International Service Fee

SF paid by the Canada Acquirers shall follow the international pricing scheme shown below.

SFs for POS and Recurring Transactions

Transaction Types	Acquirer Pays UPI
POS Transactions	0.1%
Recurring Transactions	0.1%

SFs for E-Commerce transactions

MCC	Acquirer Pays UPI
Airport (4511) Education (8211,8220,8241,8244,8249,8299) Insurance (5960,6300)	0
Other MCCs	0.2%