Visa, Mastercard to delay interchange fees hike in the US

Wednesday 17 March 2021 14:58 CET | News

Visa and Mastercard have announced that they are postponing plans to boost the fees US merchants pay when consumers use credit cards online until April 2022 because of the pandemic.

According to Bloomberg, retailers have asked both networks to delay the hikes in interchange fees, hoping to avoid a jump in costs for accepting cards at a time when consumers are especially reliant on online shopping. Mastercard has informed that it is also delaying plans that would have caused some bricks-and-mortar retailers, along with convenience stores and supermarkets, to see higher rates.

When Visa first unveiled the changes, it stated that the interchange rate for card-not-present transactions, which include those made online or over the phone, would rise. For a traditional Visa card, the fee on a USD 100 transaction would climb to USD 1.99 from USD 1.90. For premium Visa cards, the fee would increase to USD 2.60 from USD 2.50.

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Keywords: Visa, Mastercard, interchange fee, online payments
Categories: Payments & Commerce
Countries: United States
This article is part of category

Payments & Commerce