Due to card charges: Weko opens investigation into Visa and Mastercard

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Weko’s announcement on Thursday revealed that Weko’s aim is to find long-term solutions for so-called exchange fees. The starting point for the two procedures is different, the authority continues. A decision emerges in the form of a quick agreement and amicable settlement with Mastercard. There are differences with Visa that need further clarification.

The competition authority had approved an exchange fee for the brand launch phase of the new Visa and Mastercard debit cards. This phase has now been completed with a market share of 15 percent. Investigations currently initiated are now about the amount of the fee. In the previous issuance phase, an average of 12 cents per transaction was allowed.

In a statement on Thursday, Visa emphasized that the company is in full cooperation with Weko. The aim is to balance the interests of all participants in the payment system. As part of this, Visa has reduced its exchange fee rates for domestic debit card payments by an average of one-third as of July 1, 2023. This would bring the rates back to those in force in the EU for a long time.

A clearing fee is a fee charged by a payment processor when using credit cards issued by a Swiss card issuer – usually a bank. This is ultimately transferred to the merchant who accepts the card during the payment process and is therefore one of the various components of the merchant commission.

The presumption of innocence applies to both companies, Weko continues.

(SDA)

Source :Blick