Visa and Mastercard plan to raise fees in the US
The Wall Street Journal reported that credit card companies are increasing a range of fees that US merchants will pay to process transactions, putting new strain on retail. Some of the changes relate to so-called interchange fees. Card networks set the price of these fees, which merchants pay to banks when consumers shop with the cards they issue. Merchants often increase prices following such fee increases, in an attempt to protect their own profits. It's a vicious cycle. US merchants paid an estimated US$64 billion in Visa and Mastercard credit and debit interchange fees last year, according to the Nilson Report - up 12% from a year earlier and up 77% from 2012. The big question is when will the fee increases filter through to us Down Under?