The EU accepted Visa and Mastercard's proposed fee cuts on payments made on non-EU cards — marking the end to a more than decade-old antitrust investigation:
The issuers' fee reductions mark the end to a more than decade-old antitrust investigation.
Mastercard and Visa initially submitted the fee cuts in December 2018 to help resolve antitrust investigations by the EU and the European Commission .The EU and EC argued that swipe fees resulted in inflated prices for customers. Visa and MastercardThe reduced fees are applicable to both online and in-store transactions. Fees will be cut down to 0.2% for debit card transactions and 0.3% for credit card transactions, while online transactions will be cut to 1.15% for debit cards and 1.
Visa, Mastercard, and other major issuers have run into disputes regarding interchange fees in the US and Canada. Last year, Visa and Mastercard, as well as major issuing banks like Bank of America, Citi, and JPMorgan Chase, agreed to asettlement for an antitrust lawsuit initially filed against them in 2005 by merchants regarding the interchange fees they charged, marking the largest antitrust lawsuit in history.
These changes could impact US consumers when traveling overseas. Although these changes could prevent merchants from passing the fees along to customers in the form of higher prices, card issuers might offer less compelling travel rewards. And having to charge lower fees might cause issuers to stop offering low or no foreign transaction fees on travel cards.
Card networks might need to find other ways to generate revenue, particularly as demand for card acceptance increases. The European Commission's ruling might dictate how these networks will generate revenue going forward, potentially making it necessary for card networks to evaluate their fee structures. And in Europe, which has some
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