An interchange reclassification, also known as a reclass, is a post-settlement pricing adjustment that all major card networks, such as Visa or Mastercard, make when a transaction no longer qualifies for its original interchange category. After a transaction settles, the network might determine that the transaction does not meet the criteria for the originally assigned interchange category. When this happens, the network reassesses the transaction and assigns a new interchange rate.
Why Reclassifications Occur
Interchange reclassifications occur when transaction data submitted at settlement does not fully meet the requirements of the interchange category that the transaction was originally assigned. This can happen due to missing, delayed, or inconsistent transaction data, or because the transaction fails to meet specific network criteria.
Common reasons for reclassifications include the following:
Differences between authorization and settlement data
Missing or incomplete transaction fields
Late settlement submission
Authorization not obtained, such as with force-captured transactions
Mismatches between authorized and settled amounts
Failure to meet program requirements, such as Visa Custom Payment Service (CPS) criteria
Network-driven updates or delayed adjustments
Eligibility flags, such as those used in Visa programs, that are not validated at settlement
To minimize interchange reclassifications, follow these best practices:
Submit complete and accurate transaction data.
Settle transactions promptly.
Avoid force-captured transactions when possible.
Meet all applicable network program requirements, such as Visa CPS criteria.
Reclassification Outcomes
A reclassification can result in either of the following outcomes:
A credit (upclass): The reclassified interchange rate is lower than the original rate, resulting in an interchange credit. The difference is refunded to the partner or merchant.
A debit (downgrade): The reclassified interchange rate is higher than what was originally charged, resulting in an additional interchange charge. Worldpay for Platforms charges the difference that you owe.
Rather than reversing and rebilling the full interchange amount, Payrix Pro calculates the difference between the original and reclassified interchange amounts and applies only the net difference.
Reclassification Timing
Interchange reclassifications occur after settlement, typically within 2 to 14 days after the original transaction settles. The exact timing depends on when the card network completes its review and applies the adjustment. As a result, an adjustment might be credited or debited in a different billing cycle than the original transaction.
After the card network applies a reclassification, Payrix Pro reflects the resulting credit or debit in your account according to your billing model:
Net billing: Payrix Pro applies reclassification adjustments on the same day they are received from the card network. Adjustments are applied at the transaction level rather than aggregated on a billing schedule, providing more immediate visibility into the financial impact of reclassifications.
Statement billing: Payrix Pro applies reclassification adjustments according to your billing schedule. For example, if you billed monthly, all reclassification activity for the billing period is reflected in your monthly statement.
Impact by Pricing Model
How interchange reclassifications affect your business depends on your pricing model:
Interchange plus (IC+): Payrix Pro automatically passes reclassification adjustments to merchants as credits or debits. No action is required.
Flat rate: Payrix Pro does not automatically pass reclassification adjustments to merchants. Because your account absorbs these adjustments, monitor margin impacts to determine whether you need to increase your rates or move merchants to a different pricing model.
See the next section for details on how you and your merchants can view insights related to interchange reclassification adjustments.
Review Reclassification Data
The following sections describe how to review reclassification data for transaction-level analysis, reporting, and reconciliation.
View Adjustments for a Transaction
To view interchange reclassification fees associated with a specific transaction:
Select Payment History under Payments in the main side bar.
Find and select the transaction in the table to access the Transaction Details page.
Select Fees in the page side bar.
When an interchange reclassification occurs, the adjustment amount is listed as a refund or a charge in the applicable Referrer Fees and Merchant Fees sections.
Access Reclassification Reports
Access the following reports for data related to interchange reclassifications:
Interchange Reclassification: View each interchange reclassification event at the transaction level. This report provides complete visibility into interchange reclassifications, including the original and reclassified interchange codes and rates.
Profit & Loss Statement: View the income and costs associated with interchange reclassifications. Use the Interchange Reclassification advanced filter to display this data in the Income interchange reclass fee and Cost interchange reclass fee columns. These amounts are included in the total values displayed in the respective Income interchange fee and Cost interchange fee columns.
Balance Details: View interchange reclassification adjustments at the entry level. Each adjustment, identified as Interchange Reclassification Fee in the Fee Interchange/Assessments column, reflects the net difference between the original and reclassified interchange amounts.
Statement Details: View interchange reclassification adjustments at the entry level. Each adjustment, identified as Interchange Reclassification Fee Schedule in the Description column, reflects the net difference between the original and reclassified interchange amounts.
Monthly Statement: For merchants on IC+ pricing, view the number and total amount of interchange reclassification adjustments in the Interchange Reclassification row of the Interchange Fees section. These amounts are included in the total values displayed in the Fees and Interchange Fees rows of the Monthly Summary section.
See Create and Manage Standard Reports for information about generating reports.
Reconcile and Investigate Reclassifications
To reconcile interchange reclassification activity:
Use the Interchange Reclassification report to identify and track reclassification events.
Cross-reference all transaction-level adjustments.
Expect a single net entry rather than multiple offsetting entries.
If you notice unusual or elevated reclassification trends, we recommend the following actions:
Review transaction patterns, including timing, data completeness, and consistency between authorization and settlement records.
Identify potential root causes, such as late settlement submissions or authorization-to-settlement mismatches.
If you need assistance reviewing or investigating interchange reclassification activity, submit a Partner Services request.