Europe’s largest retailers are urging the European Commission to take action against the fees imposed by Visa and Mastercard.
In a letter dated May 13, the retailers expressed concern that International Card Schemes (ICS) have been able to raise their fees without competitive pressure or regulatory oversight. They criticized the complexity and opacity of the fee structure, making it difficult for businesses to understand or contest the charges.
The coalition, which includes EuroCommerce, Ecommerce Europe, Independent Retail Europe, the European Association of Corporate Treasurers, and the European Digital Payments Industry Alliance, referenced a report by The Brattle Group. According to the report, ICS fees increased by 33.9% from 2018 to 2022, an average annual rise of 7.6%, without any corresponding enhancement in services for EU merchants and consumers.
Visa and Mastercard dominate the Eurozone’s payment processing, handling approximately two-thirds of card transactions. This monopoly has raised concerns among policymakers about reliance on foreign payment networks. Consequently, the European Central Bank is promoting home-grown alternatives like the European Payments Initiative and the digital euro project.
Frustrated by the lack of alternatives, the retail group has called for the Commission to act against Visa and Mastercard using EU antitrust regulations. They propose modifications to interchange fees, enforce transparency, and create mechanisms for regulatory oversight of ICS actions.
TrueLayer’s CEO, Francesco Simoneschi, supports these concerns, stating that retailers face significant challenges in a complex system with limited competition. He emphasizes that this situation forces merchants to either absorb increasing costs or pass them on to consumers.
In its defense, Visa argues that its fees are justified by numerous initiatives aimed at enhancing security, ensuring operational resilience, and developing innovative products for both consumers and merchants.