A coalition of trade associations representing European retailers has approached the European Commission regarding concerns about Mastercard and Visa. They allege that these companies impose high fees and lack transparency in their pricing, which is against EU antitrust rules.
In a letter sent to the Commission’s antitrust chief on May 13, the associations requested stronger regulatory tools to examine exchange fees, enhance transparency, and impose price controls on international card schemes. They emphasized the need for oversight of these companies’ actions.
The letter pointed out that the International Card Scheme (ICS) has contributed to raising fees without adequate scrutiny and that their complex fee structures make it difficult for retailers to understand the charges they are facing.
A Mastercard representative refrained from commenting on the letter after being contacted, stating the company had not yet received it.
Visa has also not responded to requests for comments, but in a statement to Reuters, it indicated that its fees are reflective of the value it provides.
Five lobbying groups, including Eurocommerce and eCommerce Europe, signed the letter. The associations have yet to reply to inquiries from the media.
Mastercard and Visa handle approximately two-thirds of card payments in the Eurozone, and complaints from retailers have prompted the European Union to look into potential alternatives to these American payment giants.
Back in November, the European Commission initiated an investigation into whether the fees charged by Mastercard and Visa were appropriate, which could lead to significant fines for the companies if they are found to be in violation of regulations.
