News: Mastercard to delay card fee hikes until April next year.
(Reuters) – Mastercard Inc has postponed plans to change the exchange fee until next April, the payment processor said in a statement it emailed Tuesday.
The exchange fee is the fee that a merchant pays the card-issuing bank each time their card is swiped.
“We recognize that some merchants are still facing unprecedented circumstances. We are delaying our previously announced exchange adjustments in the US until April 2022,” said Mastercard.
Credit card usage has spiked during the COVID-19 pandemic as people stuck at home shop online.
Senator Dick Durbin, a Democrat from Illinois, and U.S. Representative Peter Welch, a Democrat from Vermont, wrote a letter here earlier this month to the Chief Executive Officers of Visa and Mastercard asking them to abandon any plans to increase the fees, as it was the country “still affected by the ongoing pandemic”.
Bloomberg News previously reported that both Visa Inc and Mastercard had postponed plans to increase card fees until April 2022. (Bloom.bg/30OF0C9)
Reporting by Niket Nishant in Bengaluru; Arrangement by Krishna Chandra Eluri
Original Source © Reuters