What is EIRF and How Does it Affect You?

Every now and then, when looking over your statement, you may have noticed a charge called “EIRF” and have wondered what EIRF is. The Electronic Interchange Reimbursement Fee, also known as EIRF, is an additional transaction interchange rate applied by Visa to certain transactions. It is a hefty charge that may appear on your statement when a transaction has been re-classified to a more expensive category.

EIRF rates can be as high as:

  • EIRF Debit: 1.75% + $0.20
  • EIRF Prepaid: 1.80% + $0.20
  • EIRF Credit: 2.30% + $0.10

EIRF charges can be caused by many things, but most commonly:

  • Card-not-present transactions
  • Late batching
  • Not settling within 2 days of the authorization
  • Forcing transactions (including voice authorization)
  • Improperly cleared transactions
  • Failure to respond to all Address Verification Service (AVS) prompts

EIRF charges can be avoided through careful attention to how transactions are run. What can you do to avoid EIRF and the charges that come with them?

  • Settle your batches nightly. One of the most common causes of an EIRF is the failure to settle batches on time. If you take more than 48 hours to settle a transaction, it will default to EIRF.
  • Clear transactions correctly. The authorization must match the clearing amount.
  • Do not force transactions or handle them off-line unless absolutely necessary. A forced transaction is the after-the-fact entry of a purchase transaction into the batch.
  • Properly enter all AVS and invoice numbers. Enter all address verification service (AVS) information when prompted by the terminal, especially the zip code. Never skip over a prompt asking for information in AVS. Even just one missed field could result in a downgrade.

If you would like to know more about EIRF, call BillingTree today at 877-424-5587.