Mastercard and Visa blamed for exploitative fees
The British Retail Consortium has accused the payment providers of foul play.

According to the British Retail Consortium (BRC), card operators have reportedly doubled the fees they charge retailers in the past two years. BRC says that if the government does not act, retailers could be pressured to pass the additional cost on to consumers, which would add around £ 40 to their bills annually.
Andrew Cregan, chief financial officer at BRC, said it is important for the government to act and tackle these exorbitant card costs. Cregan said if an energy or telephone company doubled their fees, there would be a riot. He said the company's actions are a blatant abuse of the companies' dominant positions. Companies are the most profitable in the world and they have cornered retailers. The BRC now wants the Competition and Market Authority (CMA) to conduct an investigation. According to the organization, an increase of 39% and 56% in 2017 and 2018, measured as a percentage of sales, is a clear indication of abuse of a dominant position.
Their figures show that the average cash transaction cost for a retailer was 1.42 pence, but paying with a credit card was 18.9 pence while a debit card was 5.88 pence. A MasterCard spokesman said the results of the BRC were inconsistent with the realities of the payments industry in the UK. The spokesman said the UK has highly competitive payment systems designed to make it easier to make and receive payments. Digital payments are an effective way for entrepreneurs to make and receive payments that are less costly. MasterCard added that BRC members will pay less when accepting a comparable MasterCard transaction compared to five years ago.
On the flip side, a Visa spokesperson said Visa is allowing multiple merchants across the UK to take advantage of digital payments. This would give them the ability to reach billions of customers in local communities and around the world.





