- Retailers such as Aldi, Amazon and Carrefour have backed a complaint against Visa/Mastercard
- High rates and lack of transparency are fundamental to discussion
- Rates increased 33.9% between 2018 and 2022
The main European retailers and online platforms have urged the European Commission to address high rates charged by Visa and Mastercard, according to a report by PakGazette.
Complaints are related to the negative impact of rates on EU competitiveness and the lack of transparency that surrounds them, with the two payment networks providers that dominate about two thirds of transactions in the euro zone.
Retailers have accused international card schemes (ICS) of no control increases and complex price structures that are not always so clear.
Visa and Mastercard criticized rates in Europe
A 2024 Brattle Group report revealed a cumulative increase of 33.9% in ICS rates between 2018 and 2022, although there is no improvement or justification for the corresponding service.
Visa has defended its rates: “This includes extremely high levels of safety and fraud prevention, almost perfect operational resilience and reliability, and a wide range of protection of consumers and high quality innovative products and services that meet the needs of consumers and merchants.”
An excerpt from the letter addressed to the antimonopoly chief of the Teresa Ribera Commission, the Commissioner for Financial Services Maria Luís Albuquerque and the head of the Economy Valdis Dombrovskis, seen by PakGazetteLee:
“International card schemes (ICS) have been able to increase their rates without a competitive challenge or regulatory scrutiny. They have also made their system of rates and rules so complex and opaque that players cannot understand, much less challenge, what they are paying and why.”
Supporters include main commercial associations and corporations, such as Aldi, Amazon, Carrefour, H&M, Ikea and Ebay.
They ask for an antitrust action against the two payment networks suppliers, including the introduction of rates, transparency and additional regulatory tools.
The two companies had previously agreed to reduce their multilateral exchange rates for payments in the EEE in an average of around 40%.
