Visa & Mastercard to increase fees for processing transactions

by   |  VIEW 1170

Visa & Mastercard to increase fees for processing transactions

The two biggest United States’ card networks, Visa Inc. and the Mastercard Inc. had been preparing to increase certain fees on US merchant accounts for processing transactions, and both card networks are expected to raise transaction fees from the second quarter of the year, a Wall Street Journal report revealed on Friday, the 15th of February, citing sources familiar with the matter.

According to the report, some of the charges would have been related to the so-called interchange fees, a fee what a merchant had to pay to the banks, whenever a consumer used the debit or credit card to make a purchase from the merchant’s store.

The report also mentioned, citing at least three spokesmen familiar to the subject matter, that, the fees, which Visa Inc. and Mastercard Inc. charge the financial institutions, such as banks, in order to process the card payments on behalf of the merchant accounts, would also be raised.

A Visa spokesman had also confirmed that a raise on the transaction fee would come into effect in April, 2019, however, the source also added that the fees would be raised only for merchant banks such as JPMorgan Bank of America and Citigroup, not for the merchants like Amazon and Costco.