UK’s BRC accuses Visa and Mastercard for charging users excessive fees

Author : Saipriya Iyer | Published Date : 2020-10-21 

The British Retail Consortium (BRC), a renowned trade association in the United Kingdom, has reportedly accused payment firms Visa and Mastercard of charging excess fees for their services during the pandemic. The consortium stated that the payment companies have almost doubled their fees in the past two years.

It also warned that retailers would be forced to essentially pass on these additional costs to the customers, with credit card bills increasing by another £40 per year. However, financial services giant, Mastercard questioned BRC’s findings and stated that shops were actually paying less than what they were paying over five years ago.

Andrew Cregan, head of finance policy at BRC, stated that it is important that the government takes necessary actions to reduce the excessive card fees. There would have been a sizable opposition if an energy or phone company had increased its fees by such amounts.

Cregan further added that the firms are essentially abusing their leading market positions. Visa and Mastercard are among the most profitable firms in the world and they have got the merchants in a helpless position.

BRC wants the CMA (Competition and Markets Authority) to inspect the card schemes offered by these firms.

A spokesperson for Visa stated that Visa effectively allows millions of merchants in the UK to receive benefits of cashless, digital payments, providing them the ability to reach billions of new customers in their regional communities as well as across the world. The company has offered UK customers some of the most innovative and secure payment solutions available anywhere across the globe.

A Mastercard spokesperson stated that the company does not believe that the BRC’s reports show the facts of the UK payments market. The United Kingdom greatly benefits from the immensely competitive payment system that is built for security, simplicity, and ease for all people who receive or make payments. 

Digital transaction has been deemed the most effective option for making and receiving payments for today’s businesses and is significantly less costly than cash, stated Mastercard.

Source credit: https://www.bbc.com/news/business-54606252

About Author

Saipriya Iyer

Saipriya Iyer

Saipriya Iyer presently works as a content developer for fractovia.org. Having dabbled with the domain of content creation for nearly half a decade, she now boasts of an enviable portfolio, holding substantial experience in penning down pieces related to technology, finance, and a wide spectrum of other industry verticals. A qualified computer engineering graduate from the University of Pune, Saipriya can often be found leveraging her knowledge of software technology and electronics in her write-ups. She can be contacted at- [email protected] | https://twitter.com/saipriya_i

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