Citing the continuing effects of the coronavirus pandemic on businesses, Visa and Mastercard said they will hold off on increasing interchange fees for merchants until next April.
Interchange fees are set by networks such as Visa and Mastercard and are paid by merchants to card issuers when shoppers make purchases with credit cards. The Wall Street Journal reported on the planned increases last month.
Visa and Mastercard plans included raising interchange fees for many online purchases by around 0.05 to 0.10 of a percentage point, according to a document reviewed by the Journal. Those changes would have resulted in hundreds of millions of dollars in additional interchange fee charges for merchants within the span of a year, according to estimates from CMSPI, a merchants’ payments consulting firm.
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