05/03/2021

Interchange Fee Hikes Delayed Until 2022

Visa and Mastercard have once again postponed rate increases

As reported by Bloomberg and Fortune, Visa and Mastercard have once again postponed plans to increase the fees U.S. merchants pay when consumers use credit cards online, pushing back the changes another year to April 2022 because of the pandemic.

“Visa is committed to maintaining stability in our payments system and will not make any future rate changes in the U.S. for another year while the economy recovers,” the company said in an emailed statement.

Merchants and U.S. Representatives Push for Delay

Retailers have been asking both networks in recent months to delay hikes in so-called interchange fees, hoping to avoid a jump in costs for accepting cards at a time when consumers are especially reliant on online shopping. The companies’ plans have drawn attention from Senator Dick Durbin, the Illinois Democrat who previously helped limit fees on debit-card transactions.

Please select this link to read the complete blog post from OSAE Member Infintech.