Latest news with #paymentfees
Yahoo
24-05-2025
- Business
- Yahoo
EU Renews Pressure on Visa, Mastercard Over Fee Practices
European regulators have once again spotlighted Visa Inc. (NYSE:V) and Mastercard Incorporated (NYSE:MA). The latest round of scrutiny zeroed in on scheme fees, the charges levied on banks that facilitate card payments through their networks. JMiks / New questionnaires dispatched by the Commission seek clarity on three main concerns, including the degree of choice retailers have in accepting Visa and Mastercard, the value derived from the fees they pay, and the transparency of these charges. According to Bloomberg, though the investigation is at its preliminary stage, it could result in formal proceedings and penalties reaching up to 10% of a company's annual revenue. The new scrutiny comes amid the European Central Bank President Christine Lagarde's recent comments, which endorsed the digital euro currency's rollout and reduced the bloc's reliance on overseas payment networks. While Visa Inc. (NYSE:V) defends its pricing by pointing to security, minimal fraud risk, and uninterrupted service, Mastercard Incorporated (NYSE:MA) justifies the fee by emphasizing consumer choice and global reliability. The ongoing nature of the inquiry is preventing the Commission from commenting further. Earlier, in 2019, Mastercard Incorporated (NYSE:MA) was fined $646 million for artificially raising the costs of card payments. Last year, a $30 billion settlement reached by the two companies was rejected by a U.S. federal judge. Adding the new EU scrutiny to the list could potentially intensify the investor caution against Visa Inc. (NYSE:V) and Mastercard Incorporated (NYSE:MA). As of now, both stocks hold consensus Buy ratings, with respective upside potentials of 10.39% and 10.72%. We acknowledge the potential of V as an investment. But our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than V and that has 100x upside potential, check out our report about the READ NEXT: 10 Unstoppable Dividend Stocks to Buy Now and 11 Oversold Global Stocks to Buy According to Hedge Funds Disclosure: None.
CNA
14-05-2025
- Business
- CNA
Retailers urge European Commission to crack down on Visa, MasterCard
BRUSSELS :Europe's largest retailers and online retail giants have urged the European Commission to rein in allegedly high fees charged by Visa and Mastercard, saying they hurt the bloc's competitiveness and hamper rivals. Visa and Mastercard dominate the market for payment cards and have in recent years faced complaints from retailers about their scheme fees, and what retailers say is a lack of transparency on these fees. The two U.S. companies process about two-thirds of card payments in the euro zone. The retailers' grievances have in part prompted the 27-country European Union 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 May 13 and seen by Reuters. The group cited a 2024 report by The Brattle Group that showed a cumulative increase in ICS' fees of 33.9 per cent between 2018 and 2022 - averaging 7.6 per cent per year - on top of inflation, but did not find any corresponding improvement in service for EU merchants and consumers. Visa and Mastercard did not have any immediate comment. The letter was addressed to the Commission's antitrust chief Teresa Ribera, financial services commissioner Maria Luís Albuquerque and economy chief Valdis Dombrovskis. Signatories were EuroCommerce, Ecommerce Europe, Independent Retail Europe, the European Association of Corporate Treasurers and the European Digital Payments Industry Alliance. Members of the lobby groups include Aldi, Amazon, Carrefour, eBay, H&M, Ikea, Intersport, Marks & Spencer, Worldline, Nexi and Teya. The letter called on the Commission to take action against Visa and Mastercard under EU antitrust rules, modify the rules on interchange fees by imposing price controls on scheme fees, levy transparency and non-discriminatory obligations on ICSs and introduce a tool for regulators to scrutinise actions taken by the ICSs.
