Retailers in Europe want European Commission to address high fees of Visa and Mastercard

From Yahoo Finance: 2025-05-14 13:32:00

Europe’s largest retailers and online retail companies are urging the European Commission to address high fees charged by Visa and Mastercard, claiming they harm competitiveness and hinder rivals. The two U.S. companies process about two-thirds of card payments in the euro zone, facing complaints about their fees and lack of transparency.

Retailers’ concerns have prompted the EU to explore alternatives like a digital euro to reduce dependence on American payment providers. The slow progress on a digital currency has frustrated policymakers and businesses. The retailers allege that Visa and Mastercard have increased fees without competition or regulatory oversight, with a lack of transparency on what merchants and consumers are paying for.

A 2024 report by The Brattle Group revealed a 33.9% cumulative increase in International Card Schemes’ fees from 2018 to 2022, averaging 7.6% annually, without corresponding service improvements for EU merchants and consumers. Visa defended its fees, citing high levels of security, fraud prevention, operational reliability, consumer protections, and innovative products. Mastercard did not respond to comments.

A letter from the retailers was sent to the Commission, calling for action against Visa and Mastercard under EU antitrust rules, price controls on interchange fees, transparency and non-discriminatory obligations on International Card Schemes, and a regulatory tool to monitor their actions. Signatories include major companies like Aldi, Amazon, Carrefour, eBay, H&M, and Ikea.



Read more at Yahoo Finance: Retailers urge European Commission to crack down on Visa, Mastercard