Visa has expanded its Service Fee program to include Utility merchants (MCC 4900). Previously, Service Fees were limited to government and education categories. The change is positioned as part of Visa’s broader initiative to increase card acceptance across traditionally ACH-dominated sectors.
Visa also announced rule simplifications for all Service Fee participants. Merchants are no longer required to register with Visa before implementing a Service Fee and do not need to send a Merchant Verification Value (MVV) in the transaction message. Additionally, the fee no longer needs to be processed as a separate transaction. Taken together, these changes give merchants and their service providers greater flexibility in how fees are applied and reconciled.
The updated rules took effect October 18, 2025, and are expected to accelerate Service Fee adoption, particularly among utility providers seeking to offset card-acceptance costs.
Payment service providers should continue to ensure fee disclosure and transparency compliance, as cardholders must be informed of the fee amount before completing the transaction.
TSG can help you navigate these changes. Contact us to learn more.