- Retailers: Retailers negotiate the Merchant Discount or Merchant Service fee they pay to their financial institution. The Merchant Discount may include a number of costs, including interchange; the cost of transaction processing, terminal rental and customer service; and their financial institution's or processor's margin. Merchants may change financial institutions in search of a better Merchant Discount rate or broader services.
- Financial Institutions: Retailers' and cardholders' financial institutions pay certain fees to Visa to participate in the system. Visa uses these revenues to maintain Visa's global payments network, strengthen the Visa brand through a range of marketing and promotional activities, support the development of new Visa products and processing services, and make other investments in expanding Visa's business.
Additional value is exchanged between retailers' and cardholders' financial institutions through interchange. Visa establishes this transfer rate level of interchange. Among other things, interchange helps fund the various cardholder benefits and innovations that consumers have come to expect. As a result, interchange ensures that both retailers' and cardholders' financial institutions are able to attract new customers, expanding participation in the Visa network to the benefit of all parties.
- Cardholders: Cardholders may pay certain fees to their financial institution, which may vary by the type of account or be based on other features and services provided by the financial institution to its cardholders.
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