Mastercard Set to Increase Credit Card Fees, Adding Millions in Costs for Retailers After Visa Settlement | Benzinga

Mastercard Set to Increase Credit Card Fees, Adding Millions in Costs for Retailers After Visa Settlement | Benzinga

Mastercard Set to Increase Credit Card Fees, Adding Millions in Costs for Retailers After Visa Settlement | Benzinga

Mastercard Inc. is stirring the pot in the financial world by announcing an increase in specific credit card fees starting April 15. This move is particularly eyebrow-raising as it follows closely on the heels of a massive $30 billion settlement with Visa Inc. This settlement, aimed at providing financial relief to retailers over swipe fees, seemed to ease the financial burden on merchants. However, Mastercard’s latest decision appears to be moving in the opposite direction.

The fee in question is the network “assessment” fee, which is set to rise from 0.13% to 0.14%. While this might seem like a small increment, it translates to an additional $259.1 million in fees, given last year’s transactions exceeded $2 trillion. This information comes from the Merchants Payments Coalition, a group that has been vocal about advocating for lower payment fees. They argue that these costs ultimately fall on retailers through banks, adding to the financial strain on merchants.

It’s important to differentiate between assessment fees and swipe or interchange fees. Assessment fees are levied on banks for each transaction made with Mastercard or Visa, while swipe fees are paid to the card-issuing bank. The recent agreement to cap swipe fees was expected to save retailers around $30 billion and end longstanding litigation. Analysts had hoped this deal would ease regulatory pressure on Visa and Mastercard and prevent further reductions in interchange fees.

Despite these developments, many merchants plan to continue their legal battles against Visa and Mastercard. They accuse the companies of conspiring on credit card fees and seek additional monetary compensation. Doug Kantor, a representative from the merchant coalition, criticized Mastercard’s decision to raise fees, pointing out that merchants end up bearing the cost of such increases. He also highlighted that Visa and Mastercard have a history of adjusting their fees biannually, often leaving merchants in the dark until the changes directly impact them. This ongoing saga of fee increases has been a contention since 2011, with merchants feeling the squeeze…………full-loaf-600x400-1-e1700879832480 Mastercard Set to Increase Credit Card Fees, Adding Millions in Costs for Retailers After Visa Settlement | Benzinga[read more]

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Rising-Dough-e1700879911412 Mastercard Set to Increase Credit Card Fees, Adding Millions in Costs for Retailers After Visa Settlement | BenzingaConsidering the recent developments in credit card fee adjustments and the ongoing disputes between merchants and credit card companies, how might these financial dynamics influence consumer behavior and the overall retail landscape?

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Jessie Sanchez
1 month ago

The recent developments in credit card fee adjustments and ongoing disputes between merchants and credit card companies could influence consumer behavior and the overall retail landscape in shift in payment preferences, merchant consumer relationships, price adjustments, consumer awareness, etc.

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stonestreetcoffee.com ☕️ **Discover Stone Street Coffee Company - Your Coffee Haven!** Today's Dough readers, if you're on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today's Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street's commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟

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Jessie Sanchez
1 month ago

The recent developments in credit card fee adjustments and ongoing disputes between merchants and credit card companies could influence consumer behavior and the overall retail landscape in shift in payment preferences, merchant consumer relationships, price adjustments, consumer awareness, etc.

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