opinion

Visa and Mastercard Plans Delayed by Unexpected Crisis

Visa and Mastercard Plans Delayed by Unexpected Crisis

One of the critical changes companies should be aware of is that credit card networks are looking at changes in their interchange schedules until July. These changes were initially planned to take effect in April, so this can have an impact on many businesses.

COVID-19 has caused many delays for merchants. Restaurants, hotels and local retailers have closed and/or greatly reduced their operations in large numbers as governments try to control the spread of the virus all around the world. This is affecting commerce on multiple levels. The coronavirus has caused sales organizations, in addition to many other groups, to cancel interchange updates that were going to go into effect.

The coronavirus has caused sales organizations, in addition to many other groups, to cancel interchange updates that were going to go into effect.

With a lot of volatility in businesses and markets, the environment is not one where all merchants can manage the increase in price. Sources have stated that Visa and MasterCard, as well as American Express, are delaying the planned changes to the pricing schedules. Also, Discover Financial Services confirmed a three-month postponement to some changes it was planning to implement.

Some credit card companies, however, are saying that they are still considering their options. The word coming out of Visa via email is that they are “committed to partnering with our clients during this difficult time” and their spokesperson added, “We are actively implementing and considering a number of ways we can proactively support our clients to ensure the stability, security, reliability and resiliency of the digital payments ecosystem.”

MasterCard also put out a statement, saying, “To help our customers and partners manage through this unprecedented event, we are pausing updates to some systems while delivering the same level of security and service they receive every day.” It continued, “This is one way we can help them focus on their core systems operations and resiliency efforts to meet the needs of consumers and business.”

With so many changes coming within the payments ecosystem in the time ahead, we strive to remain operational and reachable during these trying times, as interchange delays and other issues arise.

An initial draft document from late 2019 detailed Visa’s proposed credit card rates and included a number of increases, as well as some decreases, in certain types of rates for certain types of merchants. These changes sometimes depended on the card type. Restaurants looked to be getting an increase; the current 2019 schedule has interest rates for restaurants that range from 1.54% to 2.4% plus $0.10.

The draft schedule lists the credit card rates ranging from 2.1% to 2.4% plus a minimum of between four and eight cents. This increase, coming at a time when many restaurants have been temporarily closing their doors, would cause further hardship for this industry when doors were to open back up.

Other industries would also be affected by changes to the schedule if changes were not delayed, adding additional instability to affected industries during this critical period. By postponing some of the price increases to affected merchants, a more stable payment processing ecosystem can exist.

Those impacted by payment processing issues, such as retailers, have been asking networks to delay EMV liability shifts that were planned for October 2020 as well. These liability shifts were targeted at card-accepting fuel pumps; they would increase the financial responsibility of convenience stores and other retailers selling gasoline in terms of counterfeit fraud that could originate at their fuel pumps, particularly if a pump cannot read an EMV chip card. The cost and complexity of these upgrades have been said by fuel retailers to provide additional complications in terms of software, hardware, testing and certification.

Overall, at the moment, interchange adjustments may be postponed until July, but the content of many of the changes will stay the same. And while credit card companies have said they will invest in support for clients to help ensure that people can make the stated adjustments for July, it’s more vital than ever for adult industry merchants to stay in touch with payment processors who understand their unique needs.

Jonathan Corona has 15 years of experience in the electronic payments industry. As MobiusPay’s EVP, Corona is primarily responsible for day-to-day operations as well as reviewing and advising merchants on a multitude of compliance standards set forth by the card associations. MobiusPay specializes in merchant accounts in the U.S., EU and Asia. Follow them @MobiusPay on Twitter, Facebook and IG.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Breaking Down HB 805 and How it Affects the Adult Industry

North Carolina House Bill 805 was enacted July 29, after the state legislature overrode Governor Josh Stein’s veto. The provisions that relate to the adult industry, imposing requirements for age verification, consent and content removal, are scheduled to become effective Dec. 1. Platforms have until then to update their policies and systems to comply with the new regulations.

Corey D. Silverstein ·
opinion

Staying Compliant With Payment Standards Across Europe and Australia

So, you’ve got your eye on international growth. Smart move. No matter where adult-industry merchants operate, however, one requirement remains consistent: regulatory compliance. This isn’t just a legal checkbox — it’s a critical component of keeping payments flowing and business operations intact.

Jonathan Corona ·
opinion

How to Avoid Copyright Pitfalls When Using Music in Adult Content

When creating an adult video, bringing your vision to life often means assembling just the right ingredients — including the right music. However, adding music to adult content can raise complex legal and ethical issues.

Lawrence G. Walters ·
opinion

New Visa Rules Adult Merchants Need to Know

In December 2024, I shared an update on the upcoming rollout of Visa’s Acquirer Monitoring Program, also known as VAMP. The final version went into effect in June, and enforcement will begin in October. With just a month to go, now is the time to review what’s changing and how to stay compliant.

Cathy Beardsley ·
opinion

WIA Profile: Lainie Speiser

With her fiery red hair and a laugh that practically hugs you, Lainie Speiser is impossible to miss. Having repped some of adult’s biggest stars during her 30-plus years in the business, the veteran publicist is also a treasure trove of tales dating back to the days when print was king and social media not even a glimmer in the industry’s eye.

Women in Adult ·
opinion

Fighting Back Against AI-Fueled Fake Takedown Notices

The digital landscape is increasingly being shaped by artificial intelligence, and while AI offers immense potential, it’s also being weaponized. One disturbing trend that directly impacts adult businesses is AI-powered “DMCA takedown services” generating a flood of fraudulent Digital Millennium Copyright Act (DMCA) notices.

Corey D. Silverstein ·
opinion

Building Seamless Checkout Flows for High-Risk Merchants

For high-risk merchants such as adult businesses, crypto payments are no longer just a backup plan — they’re fast becoming a first choice. More and more businesses are embracing Bitcoin and other digital currencies for consumer transactions.

Jonathan Corona ·
opinion

What the New SCOTUS Ruling Means for AV Laws and Free Speech

On June 27, 2025, the United States Supreme Court handed down its landmark decision in Free Speech Coalition v. Paxton, upholding Texas’ age verification law in the face of a constitutional challenge and setting a new precedent that bolsters similar laws around the country.

Lawrence G. Walters ·
opinion

What You Need to Know Before Relocating Your Adult Business Abroad

Over the last several months, a noticeable trend has emerged: several of our U.S.-based merchants have decided to “pick up shop” and relocate to European countries. On the surface, this sounds idyllic. I imagine some of my favorite clients sipping coffee or wine at sidewalk cafés, embracing a slower pace of life.

Cathy Beardsley ·
profile

WIA Profile: Salima

When Salima first entered the adult space in her mid-20s, becoming a power player wasn’t even on her radar. She was simply looking to learn. Over the years, however, her instinct for strategy, trust in her teams and commitment to creator-first innovation led her from the trade show floor to the executive suite.

Women in Adult ·
Show More