In response to recent media reports, both Mastercard (MA.N) and Visa (V.N) have firmly denied any plans to increase fees charged to merchants when customers use credit cards for payments. The Wall Street Journal published reports alleging that Mastercard and Visa were planning to implement fee hikes in October and April, respectively.
Mastercard’s Statement
Mastercard categorically refuted these claims, asserting that it has no intentions of raising interchange rates in the United States during the upcoming fall season.
Furthermore, the company confirmed that there are no plans to increase network fees within the United States, which are essential for processing Mastercard transactions, in the coming months.
Visa’s Response
Visa, in a blog post, echoed the denial of fee increases. The company expressed its belief that recent media coverage on the issue was “misleading.”
According to Visa, despite a substantial surge in the usage of their cards, interchange fees for Visa transactions have remained static over the past decade.
- Interchange Fees: Interchange fees are charges paid by merchants to credit card companies. Like Mastercard and Visa for processing credit card transactions. These fees can significantly impact a merchant’s bottom line, making any potential changes a matter of great concern for businesses.
- Historical Interchange Trends: Visa emphasized its commitment to small businesses by highlighting that, in recent years, it had actually reduced interchange fees for the vast majority of small businesses. Additionally, Visa pointed out specific segments, such as supermarkets and quick-service restaurants, where they had lowered interchange rates.
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