Product 1 and Product 2 are common interchange categories for a variety of business types. The categories essentially replaced Visa’s prior CPS interchange program, and apply to different consumer credit transactions. The broadest difference is that Product 1 applies to card-not-present transactions and Product 2 applies to card-present transactions. However, within those two categories are multiple additional sub-categories, each with their own rates and fees. The sub-categories are based on card type (such as rewards vs. non-rewards) and other factors like small merchant processing status. As of spring 2025, the rates and fees are as follows (subject to change by Visa):
Visa Product 1
- Consumer Credit: 1.89% + $0.10 per transaction
- Rewards: 2.04% + $0.10 per transaction
- Signature: 2.05% + $0.10 per transaction
- Infinite: 2.20 - 2.60% + $0.10 per transaction
- Signature Preferred: 2.50% + $0.10 per transaction
Product 1 Small Merchant Program
- Consumer Credit: 1.58% + $0.10 per transaction
- Rewards: 1.73% + $0.10 per transaction
- Signature: 1.73% + $0.10 per transaction
- Infinite: 1.73 - 2.18% + $0.10 per transaction
- Signature Preferred: 2.18% + $0.10 per transaction
Visa Product 2
- Consumer Credit: 1.51% + $0.10 per transaction
- Rewards: 1.65% + $0.10 per transaction
- Signature: 1.65% + $0.10 per transaction
- Infinite: 1.90% - 2.30% + $0.10 per transaction
- Signature Preferred: 2.10% + $0.10 per transaction
Product 2 Small Merchant Program
- Consumer Credit: 1.29% + $0.10 per transaction
- Rewards: 1.43% + $0.10 per transaction
- Signature: 1.43% + $0.10 per transaction
- Infinite: 1.43% - 1.88% + $0.10 per transaction
- Signature Preferred: 1.88% + $0.10 per transaction
Small Merchant Program Criteria
In order to qualify for small merchant Product 1 or Product 2 interchange categories, Visa specifies that your gross annual Visa consumer credit transactions must be $280,000 or less. If you exceed that, your transactions will no longer be eligible for small merchant interchange. In that situation, your transaction will be charged according to the regular Product 1 or Product 2 interchange categories.Lowering Your Processing Costs
If you’re receiving the rates above (and you’re not seeing padded interchange) you’re likely already receiving “wholesale” interchange. However, that doesn’t mean you can’t lower your costs. Processor’s markup is the area to focus on. If you need help, or just want to see the lowest possible pricing your business can receive, check out CardFellow.com’s free quote marketplace. You’ll get real, fully-disclosed quotes from credit card processors that want your business and will commit to a lifetime rate lock on their markup so your costs stay low over the long run. Give it a try! www.cardfellow.com
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.
