WSJ learned about Visa’s intention to reduce Apple Pay fees
From next year, Visa plans to make changes to the ways Apple Pay transactions are processed, namely, to reduce Apple Pay service fees. If these changes are adopted, then when making regular automatic payments, such as streaming services subscription or club membership, the banks will be charged a fee only for the first transaction, and the service fee for all subsequent payments will not be charged. This proposal was made by issuing banks.
According to the Wall Street Journal, Visa has met the banks’ demands and considers the possibility of cancelling the regular automatic payment fee. Issuing banks have been trying to achieve this change for a long time. Presently, the fee is charged for every transaction made with Apple Pay.
Visa spoke about technical changes that have been planned with some banks a few months ago. In particular, the changes will affect tokens replacing the card number. These tokens are intended for making payments with Apple Pay mobile wallets. This technology is designed to work with Apple Pay and also to ensure the security of the card. Another token will be used to make automatic payments. This means that the fee will be charged only the first time you pay for the subscription.
Issuing banks have been negotiating with Visa for several years, trying to get the transaction fee cancelled. They use Google as an example, which does not charge a fee from issuing banks at all. Apple has spoken against these changes and has already begun negotiations with Visa’s management. This means that Visa’s position on this issue may change.
Previously, it was reported that Visa is developing a blockchain network for converting cryptoassets.