29-08-2007

Mastercard scraps percentage card charge plans for retailers

Mastercard has scrapped plans to introduce a new fee policy on debit card transactions for retailers.

UK retailers currently pay a fixed fee on all debit card transactions regardless of the amount paid. The new scheme would have introduced a fixed fee of 3.5p plus 0.15% of the purchase price. Retailers worried that the extra costs would have to be passed on to customers, adversely affecting business.

British Retail Consortium Director General, Kevin Hawkins said: “The withdrawal of Mastercard’s planned charging scheme is a victory for retailers and customers. Opposing ad valorem or percentage card charges is a point of principle for retailers of all sizes. They feared this would have opened the door to wider use of this formula for bumping up card companies’ revenues.”


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