Retailers Urge EU to Cap Visa and Mastercard Fees

Major European retailers have called on the European Commission to take antitrust action against payment giants Visa and Mastercard, Reuters reports. Companies demand that the EU set limits on transaction fees and ensure transparency in pricing, citing a substantial increase in costs in recent years.

Rising Fees

The appeal was signed by 20 trade associations and over a dozen major brands, including Amazon, Aldi, Carrefour, H&M, Ikea, Marks & Spencer, and eBay. According to Brattle Group, fees charged by card schemes grew by an average of 7.6% annually from 2018 to 2022, totaling a 33.9% increase. Retailers emphasize that this cost rise was not accompanied by improvements in service quality or reliability.

The letter states that Visa and Mastercard exploit their dominant market position by imposing opaque and non-negotiable fee structures, making it nearly impossible for businesses to analyze or challenge the charges.

EU Commission Response

The European Commission has launched a preliminary investigation. In May 2025, questionnaires were sent to retailers and payment service providers requesting detailed information on fee structures, notice periods, and dispute resolution options. Responses are due by June 18. The findings may lead to a formal antitrust probe.

Visa and Mastercard both defended their models. Mastercard claims its systems offer security, convenience, and innovation, while Visa highlights its costs for maintaining robust infrastructure. Both companies expressed willingness to cooperate but rejected any accusations of anticompetitive behavior.

Precedents and SME Impact

This isn’t the first time payment fees have come under scrutiny in the EU. In 2019, Mastercard was fined €570.6 million for limiting access to cheaper cross-border interbank rates.

EuroCommerce warned in July 2024 that fee caps under the IFR led card schemes to introduce alternative fees not covered by current regulations. These costs rose by 34% from 2018–2022, disproportionately affecting small businesses that cannot negotiate custom terms.

Unlike large chains, small merchants are subject to default conditions, making them especially vulnerable to any fee increases. Stakeholders argue that unchecked growth in card processing fees exacerbates the burden on SMEs amid growing cashless trends and e-commerce reliance.

Future Outlook

Visa and Mastercard process roughly two-thirds of card transactions in the eurozone, raising concerns among EU authorities over dependency on American systems. Alternatives like the European Payments Initiative (EPI) and digital euro are in development but progressing slowly.

Retailers are demanding swift EU action—possibly including fee caps, mandatory fee disclosures, and regulatory reform. If violations are found, the Commission could impose fines of up to 10% of a company’s global revenue.

Observers note that this dispute could reshape merchant fees, digital payment strategies, and consumer prices, especially in the online and cross-border retail segments.