A coalition of Europe’s top retailers has asked the European Commission to intervene as payment giants Visa and Mastercard continue to impose what they describe as unjustifiably high and opaque fees.
According to the group, these charges have gone beyond hurting business margins to also suppressing innovation and weakening Europe’s competitive edge in global trade.
The retailers, including Amazon, Carrefour, Ikea, Marks & Spencer and others, sent a joint letter to the European Commission on 13 May, with a message that Visa and Mastercard’s pricing model is out of control, and regulators have been too slow to act.
“International Card Schemes (ICS) have been able to increase their fees without competitive challenge or regulatory scrutiny. They have also rendered their system of fees and rules so complex and opaque that players are unable to understand, let alone challenge, what they are paying for and why,” the letter stated.
Visa and Mastercard, both U.S.-based, control around two-thirds of all card payments within the eurozone. For years, European businesses have spoken up about how these firms calculate and increase their transaction fees.
However, the issue has taken on new urgency, with many accusing the companies of using their market position to avoid transparency and sidestep competition.
A study published this year by The Brattle Group revealed that fees charged by ICSs increased by 33.9% between 2018 and 2022, averaging 7.6% annually. This sharp rise, they say, has not been matched by any improvement in services offered to merchants or consumers.
In response, a Visa spokesperson, who spoke to Reuters, defended the company’s fee structure, saying, “This includes extremely high levels of security and fraud prevention, near-perfect operational resilience and reliability, and a wide range of consumer protections and high-quality, innovative products and services that serve consumer and merchant needs.” Mastercard, on the other hand, has not provided any response.
The retailers want immediate regulatory moves under EU antitrust laws, stronger enforcement around interchange fee rules, clear disclosure requirements, and an independent regulatory tool that can oversee actions taken by card payment networks.
This also highlights deeper structural concerns. As the EU drags its feet on implementing a digital euro, a move aimed at reducing reliance on U.S. payment networks, businesses are left absorbing higher costs without alternatives.
The European Commission’s slow progress on this front has angered both policymakers and the private sector, who say Europe’s digital sovereignty is being compromised.
Meanwhile, the concerns raised reiterate regulatory moves in other markets. In Nigeria, the Central Bank is rolling out the Payment System Vision 2025 to enhance digital payment security, promote financial inclusion, and ensure fairness in transaction fees.
Nigerian regulators are already reviewing switching platforms to make sure pricing is transparent and competitive.
Europe’s situation, by contrast, shows how slow regulatory inertia can allow monopolies to tighten their grip.
