Visa and Mastercard Extend Caps on Tourist Card Fees in EU

Visa and Mastercard have agreed to extend the caps on tourist card fees in the European Union (EU) for another five years, until November 2029.

This extension follows an initial agreement reached in 2019 to cap fees on non-EU debit and credit card payments, aimed at settling an EU antitrust investigation and avoiding substantial fines.

Details of the Agreement:

• Fee Caps: Visa and Mastercard agreed to maintain a 0.2% fee cap on non-EU debit card transactions in physical stores and a 0.3% limit on credit card transactions until 2029.
• Online Transactions: For card-not-present transactions (online), the fee caps will be set at 1.15% for debit cards and 1.5% for credit cards.

Background:

The agreement to cap fees originated from a complaint filed by the business lobby EuroCommerce in 1997, leading to a lengthy investigation by the EU competition enforcer.

Visa and Mastercard voluntarily agreed to extend fee caps beyond their original expiration in November 2024.

Visa emphasized that the extended fee caps provide stability and certainty for market participants regarding inter-regional interchange rates, especially distinguishing between cross-border e-commerce and in-store transactions.

Regulatory Oversight:

While extending the agreement, the European Commission, acting as the EU’s antitrust watchdog, warned that it would initiate an investigation if it found evidence suggesting the current fee caps are no longer suitable or effective.