by Ben Dwyer “CPS Hotel” and “CPS Car Rental” are Visa interchange categories that determine the rates and fees a hotel or car rental agency will pay to accept debit or prepaid cards in person.
We’re also including “CPS Passenger Transport” (such as airlines, cruises, and railways) interchange categories in this article. The reason is that all of these industries fall under “travel and entertainment” and many have the same requirements and rates despite the different business types.
These categories only apply to “card present” transactions made with prepaid cards or debit cards. In the past, the categories also applied to credit cards, but Visa has since eliminated many of the CPS categories for credit.
What does “CPS” mean?
CPS stands for “custom payment service” and refers to rules that Visa creates for transactions. When a transaction meets the conditions that Visa sets, that transaction is said to be “CPS qualified.” In turn, CPS qualified transactions are eligible for CPS interchange categories, which have lower rates than non-CPS qualified transactions.
Read more about Visa CPS.
Visa CPS Hotel, CPS Car Rental, and CPS Passenger Transport Interchange Fees
There are multiple interchange categories for hotels, car rental agencies, and passenger transport. However, the criteria is largely the same across similar-named categories, with the industry being the primary differentiator. Additionally, categories with the same criteria generally have the same rate as well.
We’ve split the categories into groups by card type. All rates come directly from Visa’s published interchange matrix, but are subject to change at Visa’s discretion.
CPS Hotel / Car Rental / Passenger Transport Rates – Debit
These categories apply to card-present debit transactions at a hotel, car rental agency, or passenger transportation business.
| Volume Rate | Per-Transaction Fee | |
| CPS Hotel CP Debit | 1.19% | $0.10 |
| CPS Hotel Card Present DB Reg | 0.05% | $0.22 |
| CPS Car Rental CP Debit | 1.19% | $0.10 |
| CPS Car Rental CP Debit Reg | 0.05% | $0.22 |
| CPS Passenger Transport – Card Present Debit | 1.19% | $0.10 |
| CPS Passenger Transport Card Present DB Reg | 0.05% | $0.22 |
“Reg” categories refer to regulated debit cards.
Regulated and Unregulated Debit Cards
Every “CPS Car Rental” and “CPS Hotel” debit category in the table above has a corresponding “debit regulated” category. For these categories, the criteria is the same except that the card used was a regulated debit card.
In payment processing, regulated debit cards are cards issued by banks that have at least $10 billion in assets. Unregulated debit cards are issued by banks with less than $10 billion in assets. Regulated debit cards come with “caps” at the interchange fee level. Interchange rates for regulated debit cannot exceed the cap by law. Currently, the cap is set at 0.05% + 22 cents. That’s why every “debit reg” category in the table has that rate.
Keep in mind that a cap at the interchange fee level isn’t a cap on the total costs. Processors still add markups to debit transactions, so the final amount you pay will be more than 0.05% + 22 cents.
CPS Hotel and CPS Car Rental Rates – Prepaid
The following categories apply to transactions with a prepaid card at eligible hotels, car rental agencies, and passenger transportation businesses.
| Volume Rate | Per-Transaction Fee | |
| CPS Car Rental CP Prepaid | 1.15% | $0.15 |
| CPS Hotel Card Present Prepaid | 1.15% | $0.15 |
| CPS Passenger Transport Card Present Prepaid | 1.15% | $0.15 |
As you can see, all three prepaid categories have the same rate, so the card type is ultimately irrelevant for anything beyond classification. However, rates are subject to change.
In order to receive these any of these CPS Car Rental / Hotel / Passenger Transport rates, you’ll need to meet the qualifications for the specific interchange categories. If you don’t meet criteria, the transaction may “downgrade” to a more expensive interchange category.
Downgrades
In card processing, “downgrades” occur when a transaction doesn’t meet the requirements for a lower cost interchange category.
Downgrades are not entirely avoidable, so a few on a statement isn’t an issue. But if you’re seeing a lot of downgrades, it’s a good idea to investigate why. Excessive downgrades mean you’re paying more than you should.
CPS Hotel and Car Rental Interchange Qualifications
Okay, now that we’ve gone over the rates, what are the actual requirements for CPS Hotel / Car Rental / Passenger Transport?
For all categories, the transaction must:
Be card present
That means the card has to be run through a card machine, whether it’s using a magnetic strip, chip, or contactless function. Any online or hand-keyed transactions do not count and will receive card-not-present interchange.
Meet authorization and settlement criteria
This includes passing at least 1 electronic authorization, including that authorization information at settlement, and having a matching MCC for both authorization and settlement.
CPS Hotel Interchange Requirements
In addition to the general requirements noted above, to qualify for CPS / Hotel interchange, a transaction must:
- Include the check-in date, duration of stay, and a no-show indicator, if applicable
- Have a settlement date within 2 days of the check-out date
Not meeting these requirements and the requirements listed above will result in downgrades. If it’s a debit, the debit rates noted earlier will apply.
On statements: When it comes to labeling interchange on statements, different processors use different names or abbreviations. However, you may see categories such as CPS HOTEL D (for debit), CPS HOTEL DR (for debit regulated) and HOTEL PP (for prepaid.)
CPS Car Rental Interchange Requirements
For car rental interchange, transactions need to be the general requirements noted earlier, plus:
- Include a rental agreement number, return data, and no-show or extra charge indicator, if applicable
- Have a settlement date within 2 days of the return date
If a transaction doesn’t meet all of the requirements (the general ones noted and the specifics for this category) it will downgrade.
The card type will also affect whether it receives prepaid or debit CPS car rental rates.
On statement: While it’s true that processors can use whatever names or abbreviations they want on processing statements, you might see ones such as CAR D (for debit), CAR DR (for regulated debit) or CAR PP (for prepaid.)
CPS Passenger Transport Interchange Requirements
The Passenger Transport categories need to meet the general criteria noted earlier, plus:
- Include a ticket number, sequence number, and itinerary information
- Have an authorization date matching the actual transaction / purchase date
- Have a settlement date within 8 days of the transaction date
If a transaction doesn’t meet all of the criteria, it will downgrade to a more expensive interchange category.
On statements: Different processors list interchange categories differently. However, you may see CPS Passenger Transport with an abbreviation or variation on that name, such as CPSAIRD CP (for debit), CPSAIRCPDR (for debit regulated), or CPSAIRPPCP (for prepaid.)
