A week ago Payments Cards & Mobile reported on press reports that Visa and Mastercard were planning to raise network and interchange fees merchants pay when accepting credit cards.
Visa and Mastercard deny raise in interchange fees
Now, Mastercard says it denies these media reports. “Last Wednesday, several media outlets covered a story from the Wall Street Journal about “credit card fees.” Unfortunately, the story is wrong,” says the statement.
The Wall Street Journal, citing sources and documents it had viewed, initially reported that fee increases were scheduled to start in October and April at Mastercard and rival Visa.
“The reporting relies upon a report produced by an advisory firm advocating for legislation currently under consideration in Congress,” Mastercard said in the statement.
“Mastercard is not raising interchange rates in the US this fall and has no plans to do so. Mastercard is not raising network fees in the US required for the processing of Mastercard transactions this fall.”
Visa also said in a blog post that recent press coverage on the issue was “misleading”, and that despite strong growth in the use of its cards, overall interchange fees on Visa transactions have been flat for the past decade.
“Now let’s set the record straight on recent misleading press coverage,” says the blog.
“There is growing demand for using and accepting Visa cards given the benefits and protections. In fact, since 2012, we have seen a 180% increase in Visa payment volume, a reflection that more consumers prefer to pay with Visa, resulting in increased sales for retailers large and small.
Despite strong growth in the use of Visa cards, our overall interchange fees on Visa transactions have been flat for the past decade.
Moreover, over the past three years, Visa has introduced programs to lower interchange for the vast majority of small businesses in the United States. For example, last year Visa lowered interchange 10% for 90% of US businesses to help with their recovery and growth.
Efforts by special interest groups to challenge these facts in the press are simply inaccurate and disappointing. Visa will not be deterred from upholding the promise of our brand – to be the best way to pay and be paid, for everyone everywhere.”
“We stand by our reporting,” the Wall Street Journal said in a statement.
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