The European Commission this week announced that VISA International and MasterCard International have agreed to publish multilateral interchange fees paid transactions in Europe. The EU says the move is intended to enhance retailers’ ability to negotiate the fees with the banks that are part of the VISA and MasterCard card systems, according to this week’s issue of CardFlash International (www.cardflashinternational.com.) In accordance with the Commission’s decision of July 24th 2002, VISA had already allowed its member banks to reveal information about the “MIF” levels for consumer cards and the relative percentage of the cost categories composing the benchmark, at which the “MIF” has to be capped. However, merchants have repeatedly complained to the Commission that their banks are reluctant to give full information on the “MIF,” although VISA allowed them to do so. VISA has now published the “MIF” for consumer cards and the weight of the relevant costs components on its website. MasterCard Europe offered to publish on its website some of its “MIFs” and, for some cards, the relative weight of the cost elements composing these fees, and recently confirmed to the Commission its intention to do so. The EC says it will continue to monitor how VISA complies with its commitments under the exemption decision. The Commission is also investigating MasterCard’s rules and agreements, in particular those on the “MIF.”
VISA EU Intra-regional Interchange Reimbursement Fees
(Effective 4 April 2004)
Interchange fees Credit & deferred debit Immediate Debit
Electronic Authorisation Rate (EA)* 0.75% EUR 0.27
Secure Electronic Commerce Fee
(Fully Authenticated) 0.75% EUR 0.27
Secure Electronic Commerce Fee
(Non-Authenticated Security transaction) 0.75% EUR 0.27
Electronic Data Capture Rate (EDC)* 0.90% EUR 0.27
Card Not Present Rate (?CNP?) 0.90% EUR 0.29
Card Not Present (CVV2) 0.80% EUR 0.29
Airline Reimbursement Fee* 1.00% n/a
Non-Electronic 1.20% EUR 0.30
