In a significant development regarding interchange fees, Visa and Mastercard have agreed to substantial reductions in swipe fees within France, as announced by the nation’s competition regulator.
Interchange fees, commonly known as swipe fees, are charges levied on retailers each time credit cards are used for transactions at checkout. According to the French Competition Authority, these fees will undergo a nearly 50% reduction.
It’s important to note that this agreement will only impact transactions conducted within France. However, the European Commission has been actively opposing interchange fees and has recently proposed legislation aimed at capping these fees.
Reports indicate that Visa and Mastercard will lower the swipe fees to approximately 0.28% of the transaction value, down from the current 0.5%.
While Visa Europe and Mastercard have not provided immediate comments on the matter, this development marks a significant step in the ongoing debate surrounding interchange fees.
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