EU Regulators Intensify Investigation of Visa and Mastercard Over Payment Fees

European regulators are intensifying their investigation into Visa and Mastercard by asking retailers and payment companies if a standardized summary of the card companies' fees, along with greater transparency, would address their concerns. The new questionnaires focus on making the fee structure simpler and more transparent, as well as addressing how Visa and Mastercard should handle penalties charged to retailers and payment companies. The deadline for responses is June 18.

European antitrust regulators have intensified their investigation into Visa and Mastercard by sending out new questionnaires to retailers and payment companies. The documents, seen by Reuters, suggest that the EU has escalated its preliminary probe into the two companies, which have faced long-standing complaints from merchants and payments companies regarding their fee structures [1].

The latest questionnaires, sent on Tuesday, focus on making the fee structure simpler and more transparent. Respondents are asked whether a standardized summary of fees, categorized by type and drafted in plain language, would be a suitable solution. The 11-page questionnaires also delve into how Visa and Mastercard should handle fines levied on retailers and payments companies, including whether separate invoicing for fines would help merchants identify and challenge levies [2].

The new focus on transparency and simplicity comes as Visa and Mastercard have been processing about two-thirds of card payments in the euro zone. The companies have long faced complaints about their fee structures, which include scheme fees for services related to participation in their card systems.

Visa and Mastercard did not immediately respond to requests for comment. The deadline for responses is June 18, giving respondents a month to provide their input.

References:
[1] https://us.fashionnetwork.com/news/Eu-antitrust-regulators-escalate-visa-mastercard-probe-documents-show,1737164.html
[2] https://ca.finance.yahoo.com/news/eu-antitrust-regulators-escalate-visa-193023295.html