The European Commission is investigating the fees charged by Visa and Mastercard, following complaints from merchants and payments companies. The inquiry, initiated in September, aims to gather feedback from terminal providers and payments companies and could potentially lead to charges of anti-competitive practices. A new questionnaire was recently distributed to these stakeholders, seeking detailed information about the fees and services introduced by Visa and Mastercard between 2017 and 2024, changes to these fees, and the services mandatory for payment service providers.
The questions also cover the clarity of communication from the companies regarding fee changes and the adequacy of the notice period given. Respondents are asked whether they have lodged any complaints against Visa and Mastercard in the past seven years and how long it took to resolve these disputes. A Mastercard spokesperson stated, “Mastercard offers consumers and businesses choice, ways to pay and be paid that are hassle-free and worry-free, secure and most convenient for them.” Visa commented that their fees reflect the high value they provide to financial institutions, merchants, and consumers in Europe, including high levels of security and fraud prevention.
Eu investigates card payment fees
The questionnaire’s focus on mandatory scheme acceptance by payment service providers and recent fee increases suggests that the Commission may be considering whether Visa and Mastercard hold a dominant market position and are abusing that dominance. The deadline for responding to the questionnaire is June 2.
This move marks an intensification of the EU’s efforts to ensure competitive practices within the financial sector, potentially signaling a major regulatory confrontation with two of the world’s largest card payment companies. Earlier in May, a coalition of trade associations representing European retailers urged the European Commission to address Visa and Mastercard’s fee structures under EU law. The collective accused the companies of imposing high, non-transparent fees and called for price controls, transparency requirements, and regulatory tools to scrutinize the actions of international card schemes (ICS).
As these investigations continue, the European Commission is set to gather more information and assess whether further regulatory actions are necessary. If the probe escalates, investors should brace for significant ripple effects, including tighter regulations, potential fines, and a challenge to the duopoly’s dominance in Europe.