inally, some good news about interchange rates to pass on to merchants: Visa's new rates hardly increased from last year. More good news: Both Visa and MasterCard reduced their rates for small-ticket (consumer) signature-debit card transactions, from 1.60% + $0.04 to 1.55% + $0.04. And across the board, MasterCard had almost as many rate decreases as increases. All new Visa and MasterCard rates, unless noted, take effect April 7, 2006.

Visa U.S.A.

Visa announced extensive changes to merchant categories and signature requirements associated with certain small-ticket transactions. For example, it eliminated the Express Payment Service program and added a No Signature Required program. The No Signature program does away with the cardholder signature and receipt requirement and expands chargeback protection for certain face-to-face transactions under $25 across 17 merchant category codes (MCCs).

Visa expanded MCCs for its Purchasing Large Ticket program. Non-GSA (General Services Administration) Purchasing card transactions from all registered Non-Travel Service merchants may qualify for the program.Other Visa changes include Level 2 and Level 3 program requirements and the addition of a new Signature Business Card

MasterCard International

MasterCard made a number of changes to its U.S. region Consumer Credit category rates. Changes include rate increases for Consumer Standard, Merchant UCAF, Full UCAF, Merit III Base and Supermarket Base. MasterCard decreased rates for Merit III Tier 1, Supermarket Tier 1 and Warehouse Club Tier 1.

New MasterCard Consumer Credit categories include Merit III Tier 2, Merit III Tier 3, Supermarket Tier 2, Supermarket Tier 3 and Utilities (also a new Consumer Debit category).

MasterCard also made changes to its U.S region World MasterCard and Corporate.