Note: As of spring 2025, Visa has made changes to the EIRF downgrade category. While EIRF still applies to debit and prepaid card transactions, it has been replaced by the "Non-Qualified" category for consumer credit. You can read more about that in our article Visa Non-Qualified Interchange. In credit card processing, interchange downgrades occur when a transaction doesn’t qualify for an interchange category for which it should have been eligible. Downgrades can occur for a number of reasons, which we’ll explore in this article. However, it’s worth noting that in limited circumstances, an EIRF category is the best possible category for which a transaction can qualify.
EIRF Interchange Rates
In the past, EIRF applied to consumer credit in addition to debit and prepaid. However, currently it only applies to debit and prepaid. As of 2025, the rates and fees are as follows:| Volume Rate | Per-Transaction Fee | |
| EIRF Debit | 1.75% | $0.20 |
| EIRF Debit Reg | 0.05% | $0.22 |
| Volume Rate | Per-Transaction Fee | |
| EIRF Prepaid | 1.80% | $0.20 |
Interchange Basics
Interchange downgrades are a more advanced topic in credit card processing. If you aren’t familiar with interchange, it’s a good idea to take a moment to read our article about how interchange fees work. For a quick refresher, interchange makes up the bulk of the costs to accept a credit card. It goes to the banks that issue cards. There are hundreds of interchange categories, all with their own criteria for eligibility and associated rates. Every transaction you process will be charged according to the interchange category for which it met requirements.Target Interchange
Every card has a “target” interchange category. That is, the interchange category that you can expect the transaction to fall under if everything is done correctly. When everything is not done correctly and the transaction fails to meet the criteria for the target interchange category, it will “downgrade” to a more expensive category. In many cases, that means it will fall to “EIRF.”EIRF Types
As with most things at interchange, there are multiple classes of EIRF. It currently only applies to debit and prepaid cards. It does not apply to consumer credit or commercial / corporate credit cards. In most cases, “EIRF” is a downgrade category, meaning your transactions missed target interchange and were instead “penalized” (downgraded) to the EIRF interchange rate.What causes downgrades?
There are a number of things that can cause downgrades. Some common reasons include:- Not settling in the required timeframe
- Not using Address Verification System (AVS)
- Authorization amount not matching settlement amount
Consumer Debit EIRF Interchange
Technically, there are two EIRF Debit categories. However, one of them is simply the “regulated debit” version of the other. Interchange fees for “regulated” debit cards (cards issued by banks with $10 billion or more in assets) are capped by law. Thus, the EIRF Debit Reg category has the same criteria as EIRF Debit with the sole exception of the card used. An unregulated debit card that meets the criteria will receive EIRF Debit interchange. A regulated debit card that meets the same criteria will receive EIRF Debit Reg interchange.EIRF Debit
Also known as EIRF D Interchange rate: 1.75% + 20 cents per transaction. A Visa debit card that didn’t hit target debit interchange but meets the following criteria will typically qualify:- Transaction settled within 2 days of authorization
- Card present transaction or, if keyed, signature obtained
- Obtain and pass one valid electronic authorization
EIRF Debit Reg
Also known as EIRF DR Interchange rate: 0.05% + 22 cents per transaction. This category has the same criteria as the EIRF Debit category (above) with the exception of the card used. When the transaction involves a regulated debit card and meets the rest of the criteria above, it will fall under this category.Consumer Prepaid EIRF Interchange
Also known as EIRF PP Interchange rate: 1.80% + 20 cents per transaction. Transactions will fall to the EIRF Prepaid interchange category when they fail to meet all of the requirements for target prepaid interchange, but do meet the following criteria.- Obtain (and pass) 1 valid electronic authorization
- Settle within 2 days of the transaction date
- Use magstripe, chip, or tap to terminal OR key enter card details and obtain customer’s signature
Is EIRF the lowest possible downgrade?
No. Beyond EIRF is another downgrade category, called Standard. Transactions can downgrade from EIRF to Standard if criteria for the EIRF category aren’t met. Again, this applied to credit, debit, and prepaid cards in the past, but currently the "Standard" category only applies to debit and prepaid card transactions.EIRF on Credit Card Processing Statements
While you’ll see “EIRF” interchange categories on your monthly processing statement, unfortunately you won’t be able to tell which categories downgraded or why. Several different transactions may simply be lumped under the one downgrade category. To determine what caused the downgrades (and what you would have paid) you’d need to review your business downgrade report.Downgrade Reports
Identifying and diagnosing interchange downgrades can be time-consuming and complex. However, if you really want to dig into it, you can request downgrade reports from your credit card processor. These reports will show what type of card was used and what criteria was missed that disqualified it from target interchange. From there, you can formulate a plan to correct any problems in your card acceptance process for future transactions. If you’re a CardFellow member, you don’t need to do this yourself. As part of your membership, you can request statement audits. One of our processing experts will go through your statement to check for any discrepancies, downgrades, or other issues and help you resolve them. You can rest easy knowing that we’re checking your transactions to ensure that you’ll pay as little as possible for processing. Simply sign in to your CardFellow dashboard or give us a call for assistance. Not a member yet? It’s free, and signing up only takes a minute. Become a member!
Ben Dwyer began his career in the processing industry in 2003 on the sales floor for a Connecticut‐based processor. As he learned more about the inner‐workings of the industry, rampant unethical practices, and lack of assistance available to businesses, he cut ties with his employer and started a blog where he could post accurate information about credit card processing. As the blog gained in popularity, Ben began directly assisting merchants in their search for a processor. Ben believes in empowering businesses by providing access to fair, competitive pricing, accurate information, and continued support. His dedication to transparency and education has made CardFellow a staunch small business advocate in the credit card processing industry.
