NEW YORK, New York - Visa and Mastercard are planning to lift commissions on credit card transactions processed by U.S. merchants from April this year, according to a report in The Wall Street Journal, published on Friday.
Card-issuing banks will be hit with higher charges, and interchange fees (commission fees paid by merchants to banks) will rise, the Journal report said.
Whether cardholders will ultimately foot the bill over the increased charges or not, will be up to the card-issuing banks - as to whether they will absorb the cost hikes, or pass them on to consumers.
All fees are based on a percentage of goods or services sold. These can range from as low as 0.05% to 2.50%.
Visa and Mastercard have traditionally had lower fees or commissions than American Express and Diners Club.
Neither Visa nor Mastercard has made any comment on the WSJ report.