No Free Lunch Says Mastercard
MasterCard has stepped up its campaign against the European Commission’s rulings on interchange charges by warning consumers not to expect lower prices when they shop if the fees are scrapped. The EC recently gave MasterCard six months to scrap the non-negotiable interchange fees it charges for cross-border transactions or face daily penalties. MasterCard, which has promised to appeal the ruling to the European Court of First Instance, cautions that if this decision were adopted across the EU, consumers will more likely see the benefits they have come to expect when they use their credit and debit cards fade away, as happened to consumers in Australia when the government there imposed regulations on what had been a successful free market. MasterCard argues that costs currently borne by merchants under the interchange regime will ultimately be passed on to consumers if the fees are scrapped. From Finextra.