Higher bank fees halted: Visa customers can be happy for now

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Fees on debit cards are currently worrying politicians and courts. Latest development: On Tuesday, the Federal Administrative Court backed the Competition Commission’s (Weko) decision against the visas. The credit card company wanted to increase the fees charged to merchants for debit cards that ComCo deemed inappropriate and launched an investigation.

Visa then asked ComCo to declare that the higher fee was allowed until the investigation was completed. Comco denied the request. The Federal Court has now confirmed this decision.

Court decision satisfied consumer protection

In particular, it concerns the so-called interchange fees. An interchange fee is a fee that the Swiss card issuer (usually a bank) charges the payment processor when using its issued credit cards. The dealer must eventually pay the fee. Those who can then pass on the additional costs to consumers.

Visa wrote in reaction on Tuesday evening that the Federal Administrative Court’s decision was not good news for Swiss merchants. The Consumer Protection Foundation reaches a completely different conclusion. “Consumer protection welcomes the decision of the Federal Administrative Court,” Blick said when asked. “Consumers often also benefit from lower fees for credit and debit cards when shopping – as long as retailers pass on these benefits.”

Trade union opposes higher bank fees

The debate is triggered by new debit cards that have been slowly coming into circulation since 2021. Debit Mastercard replaces the Maestro card, Visa Debit replaces V-Pay. This led to an increase in wages for SMEs, which was met with criticism from the trade association (SGV). “The new debit cards distort competition,” Hans-Ulrich Bigler (65), then SGV director, told Blick.

Interchange fees are also the focus of politics. At the end of February, the National Council supported two motions calling for a ban on this fee. The Federal Council rejects both proposals and cites the work of Comco and the price watchdog. This supposedly reached an agreement with the acquirer Wordline on a price ceiling for fees. The French company, which took over the payment and transaction services sector from SIX Group in 2018, receives a maximum of 3.50 francs per transaction with Visa Debit and a maximum of 2 francs per transaction with Debit Mastercard.

Particularly for smaller retailers, fees charged by so-called buyers like Worldline made up the majority of fees, the Consumer Protection Foundation noted. “Small retailers and their customers will especially benefit from further reductions in these fees.”

Source :Blick