Mastercard has refuted recent reports claiming that it will be raising credit card fees in the United States. The reports, which originated from the Wall Street Journal, relied on information from an advisory firm advocating for legislation currently being considered by Congress.
In response, Mastercard has made it clear that there are no plans to raise interchange rates or network fees for processing Mastercard transactions in the US this autumn. The only fee mentioned in the report cited by the Journal is the Authorization Optimizer service, which is unrelated to interchange. This service is designed to decrease the chances of declined subscription and recurring payments, and any associated fees are minimal.
While the report discusses potential legislation that could lower costs for merchants, it fails to mention the potential negative impact on consumers. Mastercard states that compromised security, a loss of rewards programs, and increased prices for goods and services are all possible consequences of such legislation. In fact, a similar legislation regarding debit transactions in 2010 resulted in increased consumer prices, according to the Federal Reserve of Richmond.
Mastercard believes that any decisions regarding the implementation of new services or legislation should be based on an accurate understanding of the facts and the functioning of the industry. As a global technology company in the payments industry, Mastercard’s mission is to create an inclusive digital economy that benefits all. By leveraging secure data, networks, partnerships, and innovation, they aim to unlock the potential of individuals, financial institutions, governments, and businesses across more than 210 countries and territories.
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