Wednesday, June 18, 2008

MasterCard Decides to Drop Cross-Border Interchange Fees, Visa Does Not

This latest post on the ePaymentnews Network discusses that Visa Europe does not plan to drop interchange fees on cross-border credit and debit transactions despite MasterCard’s decision to do so across Europe. In 2007 the European Commission established that the interchange fees charged by MasterCard broke EC Treaty regulations.

Visa’s interchange fee of 0.7 percent was found to be justified, and so Visa was exempt from the EU competition law. Interchange fees set by credit card associations are the biggest charge of the various fees that banks deduct from merchant’s credit card sales.

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