The European Union is intensifying its scrutiny of Visa and Mastercard, the two dominant players in the global payment card industry, following mounting concerns from retailers over escalating transaction fees and a perceived lack of transparency.

Background

Visa and Mastercard collectively process approximately two-thirds of all card payments within the eurozone. Retailers have long expressed dissatisfaction with the fees imposed by these companies, particularly 'scheme fees'—charges for services related to participation in their card systems. These fees have reportedly increased by nearly 34% from 2018 to 2022, averaging an annual rise of 7.6%, without corresponding improvements in service quality. (reuters.com)

Retailer Coalition's Appeal

In May 2025, a coalition of major European retailers and industry associations formally appealed to the European Commission, urging intervention to regulate the high and opaque fees charged by Visa and Mastercard. The coalition includes prominent entities such as EuroCommerce, Ecommerce Europe, and major businesses like Amazon, Aldi, and Ikea. They argue that these fees undermine the competitiveness of the EU market and inflate operational costs for both physical and digital commerce. (reuters.com)

EU's Antitrust Investigation

In response to these concerns, the European Commission has expanded its antitrust investigation into Visa and Mastercard. The inquiry focuses on whether the fee structures of these companies constitute anti-competitive practices. Regulators have distributed questionnaires to terminal providers and payment companies, seeking detailed information on fees and services from 2017 to 2024. The investigation aims to determine if Visa and Mastercard have exploited their dominant market positions and whether their schemes are compulsory for providers. (reuters.com)

Visa and Mastercard's Response

Both Visa and Mastercard have acknowledged the investigations and have pledged to cooperate fully with the European Commission. Visa stated that its fees reflect the value it provides to financial institutions, merchants, and consumers in Europe, including high levels of security and fraud prevention. Mastercard emphasized its commitment to offering consumers and businesses choice and convenience, asserting that its fees are justified by the services provided. (reuters.com)

Implications and Impact

The outcome of this investigation could have significant implications for the payment card industry. If Visa and Mastercard are found to have engaged in anti-competitive practices, they could face substantial fines, potentially up to 10% of their global turnover. Such a ruling could lead to a restructuring of fee structures, increased transparency, and potentially lower costs for retailers and consumers. Additionally, the investigation may prompt further regulatory actions aimed at ensuring fair competition within the EU's financial sector.

Conclusion

The European Union's intensified scrutiny of Visa and Mastercard underscores the growing concerns over transaction fees and market transparency. As the investigation progresses, stakeholders await developments that could reshape the landscape of payment processing in Europe.

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The European Union intensifies scrutiny of Visa and Mastercard amid retailer concerns over escalating transaction fees and transparency issues.

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antitrust issues, card payment industry, consumer protection, cross-border payments, digital commerce, EU regulation, European payments, European Union, fee regulation, financial competition, financial transparency, market dominance, payment fees, payment innovation, payment security, payment systems, retail industry, retailer coalition, transaction costs, Visa, Mastercard

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Note: The above information is based on reports from Reuters and the Financial Times.