Visa/Mastercard’s 2026 Changes: What High-Risk Retailers Should Keep in Mind Going Forward
October 28, 2026
Changes to settlement fees, digital payment costs, and specialty-merchant fees could affect payment-processing expenses for eligible retailers in 2026.
Visa and Mastercard have introduced several payment-network changes in 2026 that could affect how much some retailers pay to process transactions.
High-risk and specialty retailers should pay particular attention because certain fees apply only to specific merchant categories or transaction types.
We’ll look at the key changes and what retailers should review with their payment processor to understand how the updates may affect their business.
What Changed for Visa and Mastercard in 2026?
Visa and Mastercard have updated their network rules and fee schedules throughout 2026. Some changes affect settlement and digital payment costs, while others introduce fees for eligible specialty merchants. The impact depends on your merchant category, transaction types, and processing arrangements.
Visa
Visa’s updates include a higher non-domestic settlement currency fee, revised digital commerce fees, and increased fees for certain authorization retries.
Mastercard
Mastercard has updated its Specialty Merchant Registration Program, including its annual registration fee and new transaction-based fees for eligible merchants. Effective dates vary by region.
Visa’s 2026 Payment Processing Changes
Visa’s 2026 updates affect settlement currency, digital payments, and authorization attempts.
Here’s what retailers should know:
Higher Non-Domestic Settlement Currency Fee
If your business processes transactions that settle in a currency different from your local currency, this fee is worth checking with your payment processor.
Effective April 1, 2026, Visa increased its Non-Domestic Settlement Currency Fee from 0.10% to 0.25% in the U.S., Canada, Latin America and the Caribbean, Central Europe, the Middle East, and Africa (CEMEA).
For $100,000 in eligible transactions, the fee rises from $100 to $250—an additional $150. The actual impact depends on which transactions qualify and how your processor handles the fee. Ask your processor whether the increase applies to your account.
Additional Category-Specific Visa Fees
Settlement currency isn’t the only area to review. Visa has also revised fees associated with digital commerce services and certain authorization activities.
These updates may be especially relevant if your business processes a substantial number of online payments, handles recurring transactions, or regularly encounters declined transactions that are submitted again.
Effective April 1, 2026, Visa updated its U.S. Digital Commerce Services Fee (DCSF). The fee covers certain services used during digital payment authentication, and the update expanded the services included to cover Token Authentication Verification Value (TAVV), Visa Account Updater (VAU) and Real Time VAU, Visa Digital Credential Updater (VDCU), and Visa Credential Enrichment Service (VCES).
The revised domestic rate is 1.5 basis points, with a minimum of $0.01 per authentication attempt. The cross-border rate is 3.5 basis points, also with a $0.01 minimum per authentication attempt.
Visa also increased fees for certain excessive cross-border authorization retries effective April 25, 2026. In simple terms, these charges can apply when declined transactions are repeatedly resubmitted beyond the permitted limits for the relevant retry category.
For Category 1, the fee applies to any retry. For Categories 2–4, it applies beginning with the 21st retry within 30 days. The fee increased from $0.15 to $0.25.
Why should retailers pay attention to this? Repeated payment attempts and digital authentication activity can affect processing costs, particularly for businesses that handle a high volume of online transactions. Reviewing how your payment system handles these situations can help you understand where additional fees might arise.
That doesn’t mean every online retailer will incur these charges. The applicable rules depend on the transaction and fee category, so it’s worth asking your processor to identify which charges apply to your business.
For a closer look at the updates, see PayPal Braintree’s 2026 network updates and Fiserv’s card brand updates.
Mastercard’s New Specialty Merchant Fees
Now let’s turn to Mastercard. One of the key areas to review in 2026 is its Specialty Merchant Registration Program, which carries registration and transaction-based fees for certain covered merchants.
If your business operates in a specialty category, it’s worth finding out whether you’re included in the program. The fees can add up in different ways, depending on how many eligible transactions you process and the total volume involved.
New Specialty Merchant Registration Fee
Effective June 3, 2026, Mastercard’s updated Specialty Merchant Registration fee applies in the Asia-Pacific region, Latin America and the Caribbean, and the U.S. In Canada, the updated fee took effect June 1, 2026. The annual fee is $1,000 per merchant.
This is an updated existing fee, not an entirely new charge. Ask your processor whether it applies to your business and how it will be billed.
Transaction and Volume Fees
The registration fee isn’t the only charge to consider. Mastercard introduced new transaction-based fees with different effective dates depending on the region.
- Specialty Merchant Transaction Fee: $0.02 per eligible transaction.
- Specialty Merchant Volume Fee: 0.10% of eligible transaction volume.
Mastercard’s transaction fee is based on the number of eligible transactions, while its volume fee is calculated as a percentage of eligible transaction volume.
For example, 10,000 eligible transactions would generate $200 in transaction fees alone, excluding the volume fee and annual registration charge.
Effective dates vary by region and fee type. See PayPal Braintree’s Spring 2026 Release Guide and Fall 2026 Release Guide, and confirm which fees apply with your processor.
Which Merchants Are Covered?
The term “high-risk” alone doesn’t determine whether a merchant is covered.
Mastercard’s program includes registered specialty merchants in designated categories, such as certain non-face-to-face adult services, gambling, pharmaceutical sales, tobacco sales, skill games, high-risk securities, cryptocurrency, and negative-option billing for physical products. Government-owned lottery transactions are also included under specified merchant category codes.
Coverage depends on Mastercard’s category definitions, registration requirements, and transaction data. Selling tobacco products, for example, doesn’t automatically mean every transaction falls within the program. If you’re unsure, ask your processor to confirm your registration status, merchant category code (MCC), and applicable transactions.
What Retailers Should Review with Their Payment Processor
You don’t need to memorize every card network rule. Focus on which changes apply to your account, how they affect your costs, and what you can do to prepare.
Review Your 2026 Statements
Compare recent statements with earlier ones and look for new line items or changes in network fees, transaction costs, and settlement costs. Ask your processor to explain unfamiliar charges, when they took effect, and which transactions they cover. Your actual costs depend on the fees that apply and how your processor passes them through.
Confirm Your Merchant Classification
Your merchant category code (MCC) helps determine which network rules and fees apply. If you sell different products or operate across multiple channels, confirm that your classification and transaction reporting are accurate. Ask your processor whether your business is affected by any of the 2026 updates.
Understand Upcoming Changes
Ask your processor which updates have taken effect, whether more are scheduled, and how applicable fees will appear on your statements. Clarify whether each charge comes from the card network or is an additional fee imposed by your processor.
Looking for a Payment Processing Solution
for Your Retail Business?Understanding your processing costs is one part of managing your business. If you’re reviewing your current provider or exploring other options, take a look at FTx Card Payments to see how its payment processing solutions can support your retail business.
What High-Risk Retailers Should Prepare for Next
Card network pricing and payment rules will continue to evolve. Looking ahead, retailers should be prepared for more transaction-specific pricing, further network fee adjustments, and greater differences in how merchant categories are charged.
Interchange rates and settlement costs may also change as networks revise their programs. For high-risk retailers, that makes it increasingly important to understand actual processing costs rather than focusing only on the headline rate in a processing agreement.
Regularly reviewing statements, transaction activity, and new fees can help you spot changes early and understand their potential impact on your business.
The Bottom Line
Visa and Mastercard’s 2026 changes aren’t one single rule update. They’re a collection of changes that affect different transactions and merchant categories in different ways.
For high-risk and specialty retailers, the first step is to find out which updates apply to your business. From there, review how the fees are calculated, check your processing statements, and ask your processor to explain anything that isn’t clear.
You don’t need to anticipate every possible fee change to stay prepared. You just need a clear picture of what you’re paying, why you’re paying it, and which changes could affect your costs next.
Let’s Talk About Your Payment Processing NeedsEvery retail business has different payment requirements. Whether you’re reviewing your current setup or exploring your options, we’re here to help you take the next step.