MasterCard interchange cleared by the EU Commission
- On April 1st 2009, the Commission issued a decision not to carry on its anti-competitive inquiry against MasterCard. In December 2007, the MasterCard interbank Multilateral Interchange Fees (MIFs) had been found offensive towards free competition, notably with regards to price setting for card accepting merchants. Following that ruling, MasterCard had removed in June 2008 its default cross-border MIF rate in Europe for consumer card transactions.
- Competition Commissioner Neeelie KROES said on 1st April an interim agreement had been reached with MasterCard. It will cap default fees at 0,3% for credit cards and 0,2% for debit cards in July (waiting for a legal appeal's issue against the Commission's original ruling). Previously, MasterCard fees ranged from between 0,4% to an overall 1,9%.
- Other MasterCard commitments include the cancellation of scheme fees, directly received by MasterCard from participating banks, and a reform in its by-laws and rules to introduce more transparency and competition. In particular, merchants will have to be made aware of their right to accept debit cards only, as opposed to other more up-market card products. Merchant fees will have to be detailed on bank statements.