Retailers Urge EC to Press Visa and MasterCard on High Fees

The largest retailers and online retail giants in Europe urged the European Commission to take action on high fees charged by Visa and Mastercard. They claim that the card companies hurt the bloc's competitiveness and hamper rivals.

US-based Visa and Mastercard have already faced complaints from retailers about their scheme fees and a lack of transparency on these fees. The EU is already looking into alternatives such as a digital euro to lessen dependence on payment providers. However, the slow process of bringing digital currency into use frustrates businesses.

"International Card Schemes (ICS) have been able to increase their fees without competitive challenge or regulatory scrutiny. They have also rendered their system of fees and rules so complex and opaque that players are unable to understand, let alone challenge, what they are paying for and why," the retailers said in a letter.

Retailer groups called EC to take action under antitrust rules, modify the rules on interchange fees, bring transparency and obligations on ICS, and allow regulators to take action. Members of the retailer groups include Aldi, Amazon, Carrefour, eBay, H&M, Ikea, Intersport, Marks & Spencer, Worldline, Nexi, and Teya.

Visa and Mastercard currently process around two-thirds of all card payments in the eurozone. Between 2018 and 2022, the cumulative increase in ICS's fees was 33.9%, averaging 7.6% per year on top of inflation. Inflated fees, however, do not bring any improvement in service for EU merchants and consumers.