EU antitrust regulators are examining whether payment giants Visa (V) and Mastercard’s (MA) fees negatively impact retailers, according to a document seen by Reuters. In September, the European Commission sent questionnaires to retailers and payment providers asking them about Visa and Mastercard’s fee structures and transparency. The investigation centers on “scheme fees,” which Visa and Mastercard charge for card system participation, alongside other fees like processing and innovation fees.
EU regulators are exploring whether these fees have harmed retailers in the EEA (EU countries plus Iceland, Liechtenstein, and Norway) from 2016 to 2023 and if retailers had any say in fee changes. Visa and Mastercard claimed they are cooperating and that the inquiry is routine for regulators seeking transparency in the industry.
In addition, EuroCommerce, which represents major retailers like Amazon (AMZN), argues that scheme fee increases are costing the EU economy about €1.5 billion yearly. With over 800 scheme fees, many acquirers and merchants struggle to understand or implement them effectively. The UK’s Payment Systems Regulator also raised similar concerns and noted that high fees haven’t necessarily improved services.
Is Visa or Mastercard Stock Better?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that MA stock has more room to run than Visa. In fact, Mastercard’s price target of $558.81 per share implies almost 7.4% upside versus Visa’s 5.9%.
See more Visa and Mastercard analyst ratings
