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Interchange fee is the charge a merchant pays to the card-issuing bank every time a consumer swipes their card.
“Mindful that some merchants are still facing unprecedented circumstances…we are delaying our previously announced interchange adjustments in the U.S. until April 2022,” Mastercard said.
Credit card usage has surged during the COVID-19 pandemic as people stuck at home resort to shopping online.
Senator Dick Durbin, a Democrat from Illinois, and U.S. Representative Peter Welch, a Democrat from Vermont, wrote a letter https://www.durbin.senate.gov/imo/media/doc/Letter%20from%20Sen.%20Durbin%20and%20Rep.%20Welch%20to%20Mr.%20Kelly%20and%20Mr.%20Miebach%20-%20March%203,%202021.pdf to Chief Executive Officers of Visa and Mastercard earlier this month, asking them to call off any plans to increase fees as the country was “still reeling from the ongoing pandemic”.
Bloomberg News had earlier reported both Visa Inc (NYSE:V) and Mastercard had postponed plans to hike card fees until April 2022. (https://bloom.bg/30OF0C9)
