BLOG | MasterCard Europe has agreed to lower its average domestic interchange fee in the Netherlands from 0.9% to 0.3% in the coming two years. Dutch merchants accepting MasterCard payments are likely to benefit since lower costs could result in lower credit card merchant fees. By lowering its interchange fees, MasterCard has prevented a formal investigation by the Dutch Authority for Consumer & Markets.
Investigation on Interchange Fees Until February this year, the Dutch Authority for Consumer and Markets had the intention to start a formal investigation on the Dutch interchange fees set by MasterCard for processing and settlement of domestic credit card transactions. A domestic transaction refers to a transaction whereby the cardholder and merchant resides in the same country.
In response, MasterCard proposed to lower its Dutch ‘interbank fees’ under the condition the investigation was waived. Both parties agreed last February, so MasterCard will gradually reduce its interchange fees in the coming 2 years. The first ‘price-reduction’ is coming up and will take effect as of June 1st, 2014.Read More
Article by Erik van den Heuvel, About-Payments, May 13th, 2014.