Visa and Mastercard dominate the market for payment cards and have in recent years faced complaints from retailers about their fees, and what retailers say is a lack of transparency on these fees. The two US companies process about two-thirds of card payments in the euro zone.
The retailers grievances have in part prompted the 27-country EU to look into alternatives such as a digital euro to lessen dependence on American payment providers. The slow legislative process on a digital currency, however, has frustrated some policymakers and businesses.
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, the retailers said in a letter dated 13 May. ICS is a term for a payment card network.
The group cited a 2024 report by The Brattle Group that showed a cumulative increase in ICSs fees of 33.9 between 2018 and 2022 averaging 7.6/year on top of inflation, but did not find any corresponding improvement in service for EU merchants and consumers.
Visa said its fees reflect the value of its services to financial institutions, merchants and consumers in Europe.