Mastercard Says It’s Not Raising Interchange Rates or Network Fees in the US, Despite Reports Claiming Hikes in Fees

Recently, several reports covered an update from the WSJ regarding “credit card fees.” Unfortunately, the story is wrong, Mastercard (NYSE: MA) claims.

According to Mastercard, the reporting relies upon a report “produced by an advisory firm advocating for legislation currently under consideration in Congress.”

Mastercard wants to “ensure the correct facts are associated with Mastercard and are understood.”

Mastercard further noted that they’re simple and clear:

  • Mastercard is not raising interchange rates in the U.S. this fall and has no plans to do so.
  • Mastercard is not raising network fees in the U.S. required for the processing ofMastercard transactions this fall.
  • The Authorization Optimizer service is the only Mastercard fee noted in the study cited by the Journal. It is not related to interchange. This service is designed to reduce the likelihood that subscription and recurring payments will be declined, with any related fees being de minimis in scope.

The report notes that Congress is “considering legislation that could potentially lower costs for merchants, yet it fails to mention the negative consequences for consumers – compromised security, a loss of rewards programs and higher prices on goods and services.”

For example, after similar legislation “pertaining to debit transactions was passed in 2010, the Federal Reserve of Richmond concluded that consumer prices increased.”

Whether businesses are considering implementing a specific service or Congress is considering legislation, Mastercard believes these activities “should only take place based on an accurate understanding of the facts and how our industry works.”

As covered, Mastercard is “a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible.”

Using secure data and networks, partnerships and passion, their innovations and solutions help individuals, financial institutions, governments and businesses “realize their greatest potential.”

With connections across more than 210 countries and territories, they are “building a sustainable world that unlocks priceless possibilities for all.”

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