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: