Retailers demand the European Commission research into visa and mastercard costs
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- Retailers such as Aldi, Amazon and Carrefour have filed a complaint against Visa/Mastercard
- High costs and a lack of transparency are central to the discussion
- The costs rose 33.9% between 2018 and 2022
Large European retailers and online platforms have encouraged the European Commission to tackle high reimbursements that are charged by Visa and Mastercard, according to a report from Reuters.
Complaints relate to the negative impact of reimbursements on the EU competitiveness and the lack of transparency around it, whereby the two payment network providers about two -thirds of the transactions in the eurozone dominate.
Retailers have accused the international card schedules (ICs) of non -checked reimbursements and complex price structures that are not always so clear.
Visa and Mastercard criticized for reimbursements in Europe
A report from 2024 by Brattle Group revealed a cumulative increase of 33.9% in ICS allowances between 2018 and 2022, despite no corresponding service improvement or justification.
Visa has defended its costs: “This includes extremely high levels of security and fraud prevention, almost perfect operational resilience and reliability, and a wide range of consumer protection and high-quality, innovative products and services that meet consumer and trader needs.”
An extract from the letter addressed to the antitrust chief of the Teresa Ribera committee, financial services commissioner Maria Luís Albuquerque and Economy Chief Valdis Dombrovskis, seen by ReutersReads:
“International card schedules (ICs) have been able to increase their costs without competing challenge or regulatory control. They also made their system of reimbursements and rules so complex and opaque that players cannot understand, let alone, let alone, for which they pay and why.”
Proponents are large trade associations and companies, such as Aldi, AmazonCarrefour, H&M, Ikea and Ebay.
They call for antitrust action against the two payment network providers, including the introduction of reimbursement regulation, transparency and further regulatory instruments.
The two companies had previously agreed to lower their multilateral exchange costs for payments in the honor with an average of around 40%.
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