Visa and Mastercard are planning to increase transaction fees for US merchants who accept card payments, Reuters reports. The hikes, which come into effect in April 2019, are likely to further damage already the fragile relationship between payment providers and merchants.
According to sources, the increases will firstly affect interchange fees, which merchants pay their banks when accepting a card transaction. Fees that the banks pay to Visa and Mastercard for processing payments will also increase, says the report.
A spokesperson for Visa confirmed that fees would rise in April, but only for banks, not merchants. However, banks are not known for their benevolence, or for reducing profits by absorbing costs. So they are likely to pass on these fee increases to the merchants.
Similarly, merchants exist to make…