Visa has announced a major update impacting issuers across multiple regions: starting October 1, 2025, a new processing fee will be assessed for transactions involving Account Screen Authorization File (ASAF) downgrade processing.
Originally introduced in August 2024, Visa’s ASAF downgrade feature helps issuers maintain clean account listings, reduce unnecessary declines, and avoid clearing blockages for valid account numbers (PANs). However, with this new fee structure, issuers will face additional costs if they rely on the downgrade process instead of proactively managing their ASAF entries.
While acquirers and merchants are not directly billed, the change could indirectly impact transaction flows, particularly in stand-in processing scenarios. Staying informed about this backend adjustment is critical for payment processors, merchants, and issuers alike.
Below, we break down the key details of Visa’s upcoming ASAF downgrade fee and what it means for the payments ecosystem.
What Is the Visa Account Screen Authorization File (ASAF) Downgrade?
The Account Screen Authorization File (ASAF) downgrade is a feature Visa implemented in 2024 to help issuers manage problematic account listings more effectively.
When an issuer approves a transaction tied to a PAN listed with certain “Never Approve” action codes, Visa’s system automatically downgrades the listing to Response Code 05—Do Not Honor.
The following original response codes trigger an ASAF downgrade:
- 04 — Pick up card (no fraud)
- 07 — Pick up card, special condition (fraud account)
- 14 — Invalid account number
- 41 — Lost card, pick up (fraud account)
- 43 — Stolen card, pick up (fraud account)
- 46 — Closed account
Importantly, once downgraded, the account will only be declined during stand-in processing, unless the issuer removes the PAN from ASAF manually.
Read more on decline codes here.
Visa’s New ASAF Downgrade Processing Fee
Starting October 1, 2025, Visa will introduce a fee per transaction whenever ASAF downgrade processing occurs.
Key facts about the fee:
- Assessed to issuers (not merchants or acquirers)
- Applies globally (U.S., Canada, Europe, CEMEA, and LAC regions)
- Intended to encourage better ASAF listing hygiene by issuers
Fee Structure by Region:
| Region | Fee per Transaction |
|---|---|
| U.S. | $0.05 |
| U.S. (Interlink) | $0.05 |
| Canada | $0.05 |
| Europe | $0.07 |
| LAC (excluding Brazil) | $0.05 |
| CEMEA | $0.05 |
Why Is Visa Implementing This Fee?
Visa’s goal with the ASAF downgrade fee is to:
- Encourage issuers to proactively maintain clean ASAF listings
- Prevent valid account declines that disrupt the merchant checkout experience
- Protect the integrity of the Visa payments ecosystem
Issuers can avoid these fees by reviewing and updating their ASAF records to ensure valid PANs are not incorrectly listed with action codes 04, 07, 14, 41, 43, or 46.
Impact on Merchants and Acquirers
While the new ASAF downgrade fee targets issuers, merchants and acquirers should stay informed because:
- Transaction declines may shift slightly depending on issuer response behavior.
- Improved issuer hygiene could result in fewer unnecessary declines, helping merchants maintain higher authorization rates.
- Payment processors like Corepay should monitor patterns closely post-implementation to ensure smooth merchant experiences during stand-in processing.
Key Dates to Remember
- October 1, 2025: ASAF downgrade fee officially goes into effect.
- Now–September 2025: Issuers should review and adjust ASAF listing practices to avoid unnecessary fees.
Additional Resources
- Visa Global Technical Letter – October 2024 and January 2025 Editions (Article 5.1)
- Visa Account Screen Overview (Visa Access platform)
Conclusion
Visa’s upcoming ASAF downgrade processing fee is part of a larger effort to ensure better account list management and minimize transaction friction across the network. Issuers who proactively maintain accurate ASAF records will avoid new costs — while merchants and processors should benefit from fewer avoidable declines during authorization and clearing.
