😱Mastercard will increase commissions for credit and debit card transactions

😱Mastercard will increase commissions for credit and debit card transactions

Starting April 15, the corporation will increase the so-called "assessment fee" from 0.13% to 0.14%..

➡️ Considering the transaction volume of Mastercard with these cards (2.591 trillion USD in fiscal year 2023), the annual increase will amount to 259.1 million USD... yet merchants are far from pleased with this development.

➡️ This increase came after last week's agreement between Visa and Mastercard, on one hand, and merchants, on the other, to reduce interbank fees. There were expectations that the cost of transaction processing for businesses would decrease... but unfortunately, it did not.

➡️ Justifying the increase, representatives of Mastercard stated that the change in the fee structure is not related to interbank trade and supposedly responds to the need to finance network security.

➡️ At this moment, Visa and Mastercard control 80% of the global market.

➡️ To ensure healthy competition in the industry, the US law🇺🇸 requires banks with assets of more than 100 billion USD to process the cards they issue on at least two independent networks: Visa or Mastercard + a competitor, such as NYCE, Star, Shazam or Discover.

To ensure healthy competition in the industry, US law🇺🇸 mandates that banks with assets exceeding 100 billion USD process the cards they issue on at least two independent networks: Visa or Mastercard, along with a competitor such as NYCE, Star, Shazam, or Discover.

#news #world_wide #USA