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These fee increases are set to take effect in two stages: the first in October and the second in April next year. Notably, a significant portion of these fee hikes are targeted at online transactions.
The potential revisions may lead to an increase of around $502 million in yearly fees for merchants, as estimated by CMSPI, a consulting company specializing in merchant services.
In 2022, U.S. merchants reportedly paid approximately $93 billion in credit card fees to Visa and Mastercard, according to the Nilson Report. This marked a considerable increase from the $33B paid in 2012.
Merchants often pass on a portion of these expenses to consumers through higher prices. A growing number of small businesses are opting to provide discounts to customers who choose to pay with debit cards, cash, or checks instead.
Platforms like Visa and Mastercard dictate the fees merchants must pay.
Visa and Mastercard shares rose over 1% on the news.
