Visa and Mastercard extend fee limits until 2029

Visa and Mastercard. Photo by youtube.com

Visa and Mastercard, two of the biggest competitors in the payment network sector, have reached an agreement with EU antitrust regulators to extend the restrictions on tourist card fees that were first implemented five years ago. The European Commission said on Friday that this extension would now last until 2029. The fee limits were imposed as part of a 2019 agreement in response to the concerns raised during an EU investigation into antitrust violations.

The implementation of these fee limitations, which include a 0.2% limit on payments made with debit cards from countries outside the EU and a 0.3% cap on payments made with credit cards, was done in order to avoid hefty penalties and to resolve the antitrust investigation. Since they are the primary operators of the payments network, Visa and Mastercard impose interchange fees on retailers that accept their cards. These fees generate revenue for the card issuers. In addition, the EU competition enforcer has pledged to closely monitor the situation and do more research if needed to make sure the business is acting fairly. Even if the existing limitations are scheduled to expire later this year, this is still the case.

Summary News: Visa, Mastercard extend non-EU card fee limits

Visa and Mastercard have agreed to extend restrictions on tourist card fees, first implemented five years ago, with the European Commission stating that the extension will last until 2029. The fee caps were put in place in response to issues brought up by an EU probe into antitrust infractions. The fee caps were put in place to prevent fines and end the antitrust probe. They include a 0.2% limitation on debit card payments from non-EU nations and a 0.3% restriction on credit card payments. In order to guarantee fair business practices, the EU competition enforcer has promised to keep an eye on the issue and carry out more study.

News URL: https://www.yom9.com/2024/07/visa-and-mastercard-extend-fee-limits.html

Source: Visa, Mastercard to extend non-EU card fee caps to 2029, EU says