Concept

Members of UnionPay International Co., Ltd. (UPI), instead of cardholders or merchants, remit or receive an interchange reimbursement fee (IRF) every time a UnionPay Card is used. For example, the merchant's bank remits IRF to the cardholder's bank when purchasing goods or services.

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

The Intra-EU regional pricing scheme took effect on December 9, 2015. This pricing scheme applies to all payment transactions (POS, E-commerce, Mo/To,recurring,etc.,but excluding ATM-related transactions) conducted in the EU where both issuers and acquirers are located within the EU.

Thus the domestic IRF for Italy shall also follow the intra-EU regional pricing scheme shown below.

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

IRF by Card Type Acquirer Pays Issuer
Debit/Prepaid Card 0.2%
Credit Card 0.3%

Malaysia

The current domestic pricing in Malaysia took effect on July 1, 2015 to meet local compliance requirements.

In 2016, 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 August 1, 2016.

Thus, UPI will adjust the domestic pricing scheme in Malaysia as following.

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) 0.90%
Max: MYR0.80
Government Services and Charity
(9211, 9222, 9223, 9311, 9399, 9402, 9405, 8398, 8661)
0
Others 1.00% (current)
0.987% (from August 1, 2016 on)

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