Card Networks Are About to Raise Merchant Fees But Not Without Consequences

The pandemic has not been kind to businesses during the past two years, and with Mastercard and Visa poised to raise merchant fees on card transactions next month, merchants are more than simply disgruntled about card networks cutting into their already tight margins: In response to the increase in merchant fees, businesses are calling for policymakers to scrutinize the fee hikes and card networks’ operations overall, passing on the costs of the fee hikes to consumers, and seeking alternative payment options in an effort to dissuade customers from transacting with credit cards.

Learn why Mastercard and Visa are raising merchant fees when businesses are still struggling with the effects of the pandemic and how Mastercard and Visa should justify the fee increases to merchants in a bid to increase buy-in and stem the degree of any near- and longer-term ramifications.