Visa and Mastercard plan to add new card service fees in the coming months
According to the publication, Visa will start charging additional fees in October for online transactions, and in April for commercial credit, debit, and payment cards, as well as for prepaid payments.
Visa Inc. and Mastercard Inc. are planning to increase the commission paid by many retailers when accepting credit and debit cards.
Bloomberg reports.
According to the publication, Visa will start charging additional fees in October for online transactions, and in April for commercial credit, debit, and payment cards, as well as for prepaid payments. According to the report, a new fee for pre-authorization of credit card purchases for Mastercard will take effect in October.
According to CMSPI, a consulting company, merchants can pay more than $500 million in additional fees annually.
The so-called interbank commission has become a controversial issue in recent years. Although Visa and Mastercard set the rates of these fees, it is the banks that issue the cards that retain most of the fees. Even if they amount to only pennies for each purchase, these costs have been rising in recent years as more consumers use credit cards, which tend to have higher transfer fees than debit cards, the publication adds.
According to the industry publication Nilson Report, last year, US merchants spent a record $160.7 billion on so-called swipe fees, which is 16.7% more than in 2021.
