WASHINGTON--()--The European Union blasted Visa Europe for restricting competition and raising prices for consumers using the “swipe” fees its banks charge merchants when customers use credit cards. It is confirmation that the swipe fee-setting by the major credit card companies skirts antitrust laws and the principles of market competition.
“We believe at this stage that these fees are a restriction for competition.”
“Our preliminary conclusion is that Visa's [fees] inflate the costs of payment card acceptance and ultimately increase consumer prices,” said Antoine Colombani, spokesman for European competition commissioner Joaquín Almunia. "We believe at this stage that these fees are a restriction for competition.”
The European Union has been fighting Visa and MasterCard for years over what it says are exorbitant swipe fees charged merchants. The EU, for instance, brought antitrust charges against Visa Europe in April 2009, less than a week after suing MasterCard Inc. European multilateral credit card swipe fees are less than one-third of the fees in the United States (which are the highest in the industrialized world).
Announcements like Tuesday’s typically trigger negotiations between the European Union and the card companies and should lead to fee reductions and lower prices for European consumers.
The Merchants Payments Coalition (MPC) - UnfairCreditCardFees.com - is a group of retailers, supermarkets, drug stores, convenience stores, fuel stations, on-line merchants and other businesses who are fighting against unfair credit card fees and fighting for a more competitive and transparent card system that works better for consumers and merchants alike. The coalition's member associations collectively represent about 2.7 million stores with approximately 50 million employees.
