Retailers demand European Commission investigate Visa and Mastercard fees

• Retailers like Aldi, Amazon, and Carrefour have backed a complaint against Visa/Mastercard
• High fees and a lack of transparency are central to the discussion
• Fees rose 33.9% between 2018 and 2022

Major European retailers and online platforms have urged the European Commission to address high fees charged by Visa and Mastercard, according to a report by Reuters.

Complaints relate to the negative impact of fees on EU competitiveness and the lack of transparency surrounding them, with the two payment network providers dominating about two-thirds of transactions in the euro zone.

Retailers have accused the International Card Schemes (ICS) of unchecked fee increases and complex pricing structures that aren't always so clear.

Visa and Mastercard criticized over fees in Europe

A 2024 report by Brattle Group revealed a 33.9% cumulative rise across ICS fees between 2018 and 2022, despite no corresponding service improvement or justification.

Visa has defended its fees: "This includes extremely high levels of security and fraud prevention, near-perfect operational resilience and reliability, and a wide range of consumer protections and high-quality, innovative products and services that serve consumer and merchant needs."

An extract from the letter addressed to the Commission's antitrust chief Teresa Ribera, financial services commissioner Maria Luís Albuquerque and economy chief Valdis Dombrovskis, seen by Reuters, reads:

"International Card Schemes (ICS) have been able to increase their fees without competitive challenge or regulatory scrutiny. They have also rendered their system of fees and rules so complex and opaque that players are unable to understand, let alone challenge, what they are paying for and why."

Supporters include major trade associations and corporations, such as Aldi, Amazon, Carrefour, H&M, IKEA, and eBay.

They're calling for antitrust action against the two payment network providers, including the introduction of fee regulation, transparency, and further regulatory tools.

The two companies had previously agreed to reduce their multilateral interchange fees for payments in the EEA by an average of around 40%.

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