Stock of both Mastercard and Visa was lower in early trading.
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Mastercard and Visa are preparing to increase the fees paid by large merchants, according to a report from The Wall Street Journal.
The fee increases are scheduled to take effect next month, the newspaper said, citing people familiar with the matter. The increases had been delayed for the past two years due to the pandemic.
Mastercard stock fell initially, but rebounded to close 0.5% higher at $314.33. Visa gained 0.5% to $191.71.
Interchange fees—charges set by the card companies and paid by merchants when shoppers use cards for payments—account for most of the increase. The money goes to the bank that issued the card.
The Visa and Mastercard fee increases will apply to many online consumer credit-card purchases, according to a document seen by the Journal and people familiar with the matter, the newspaper said.
More merchants have started charging consumers extra when they pay with credit cards, according to the report. The ability to accept card payments helped businesses push through the pandemic, Visa and Mastercard said.
“Electronic payments have proven even more valuable since the start of the pandemic,” a Mastercard spokesperson told Barron’s. “And that’s why we’re seeing merchants encouraging their customers to use electronic forms of payment due to the significant value that they receive in return – a safe, convenient experience and a guaranteed payment.”
The spokesperson said MasterCard has invested $250 million to help small merchants survive and thrive, and that the company is reducing costs for certain smaller merchants, as well as hotels and daycare facilities, among other categories that were hit hard by the pandemic..
A Visa spokesman told the Journal that merchants can avoid the higher fees if they provide certain transaction data and use its token service that masks card numbers.
Write to Logan Moore at [email protected].
