The EU antitrust regulators look for feedback from terminal providers and payment companies through questionnaires that could lead to charges of anti-competitive practices for Visa and Mastercard, according to Reuters.
After a similar one was distributed for merchants and retailers last month, a new questionnaire was sent. The EU competition enforcer’s study started as a result of complaints from merchants and payment companies about Visa and Mastercard fees.
The two companies charge fees for services regarding participation in their card system and process about two thirds of card payments in the Eurozone. Regulators wanted to know which scheme and processing services are mandatory, and how the two companies inform payments companies about new fees and changes.
The latest questionnaire for the market players imposed a few questions, as the EU regulator wanted to know the number of fees or services charged by the two companies between 2017 and 2024, the number of new fees introduced, and the number of changes to existing fees. It also asked if the information offered by Visa and Mastercard is sufficiently clear and if they give enough notice about changes to fees and services. Respondents were also asked whether they had given grievances to the companies in the last seven years and how long it took to process the complaints.
The questionnaire aimed to find out the degree to which the schemes must be accepted by all payment services providers and how the companies raised fees in recent years, according to the Reuters. The Commission is potentially exploring ways to establish that Visa and Mastercard hold a dominant market position.
Mastercard responded to the situation by claiming it offers customers and businesses choice, and ways to pay and be paid that are more convenient and secure for them. Meanwhile, Visa mentioned that its fees reflected the value it offers to financial institutions, customers, and merchants in Europe, including high security levels and fraud prevention, operational resilience, and reliability.
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