After Mastercard, Visa reduces its interchange costs

For the first time, the costs of debit cards for European consumers paying in Switzerland fall.Keystone

Merchants will now have to pay slightly lower fees for Visa cards. Furthermore, The group has managed to find an agreement with the competition committee.

Pascal Michel

The Visa financial group reduces Interchange commissions for after mastercard, visa reduces its new Swiss debit cards. Consequently. Consequently, These commissions are deducted from each transaction and paid to payment after mastercard, visa reduces its card issuers, generally a bank. Meanwhile, Their objective is to promote innovation in the bank card sector. Meanwhile, Companies such as Visa. Similarly. Moreover, Mastercard do not take advantage of it directly, but it is however they who fix the amount of these commissions in the complex system of transactions.

Visa now reduces its costs to the maximum average rate of 0.15%. In addition, Previously, it amounted to 0.2%on average. Similarly, This measure is part of an amicable agreement with the Competition Commission (COMCO). which had opened an investigation against Visa and Mastercard.

Online payments also benefit – After mastercard, visa reduces its – After mastercard, visa reduces its new

The costs related to online after mastercard, visa reduces its new payments also decrease. For national online payments made by debit card, the rate will drop from 0.31% to 0.25% from 1^is november. The Comco also announces that. for after mastercard, visa reduces its the first time, visa cross -border interchange rates will also drop. If a visa card of the European Economic Area is used in a Swiss merchant. the costs for debit cards will drop from 1% currently to 0.2%. For credit cards, they will drop from 1.15% to 0.44%.

Visa estimates are more generous: according to them. trade can even hope to achieve total savings of sixteen million francs thanks to this agreement.

Traders do not jubilant

This is in principle good news for retail. For years, The sector denounces the excessive costs charged by the financial giants Visa and Mastercard. But the agreement concluded with the Comco will after mastercard, visa reduces its not satisfy everyone.

Recently. more than 36 Swiss merchants. including Coop, Derour, Edelweiss, Selecta and Swiss, filed a complaint against Visa and Mastercard with the Commercial Court of the Canton of Zurich. They criticize the two companies for having taken “illegal and excessive” interchange commissions in recent years. Merchants are now claiming the reimbursement of 142 million francs. Visa disputes this decision and considers that the complaint is “baseless”.

Not sure the Swiss take advantage of it

Will customers benefit from this new regulation? Among other things, it will depend after mastercard, visa reduces its new on buyers like Wordline. These provide payment terminals, treat payments in the background and take the interchange commissions for banks. Buyers must therefore first adapt their tariff models.

Likewise. Merchants must decide after mastercard, visa reduces its if they wish to pass on the savings made on their customers. This should not always be the case, because their calculations have many variables. Indeed. the Interchange Commission is only one of the different commissions on the cards that a merchant must take into account.

The Comco has already found a solution with Mastercard in May 2024. The group reduced interchange costs for payments by debit card in store at 0.12%. Additionally, The rate currently negotiated with VISA is higher, at 0.15%. On the other hand, it also applies to mobile payments, which are increasingly used. With Mastercard, on the other after mastercard, visa reduces its new hand, traders must continue to pay much more.

Translated and adapted from German by Léa Krejci

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