And that’s why we’re seeing merchants encouraging their customers to use electronic forms of payment due to the significant value that they receive in return.” “Electronic payments have proven even more valuable since the start of the pandemic.
“Our focus remains ensuring the safety and security of payments while balancing the interests of all parties,” Mastercard said in a statement. The fee will also be capped at 20 cents, meaning that for larger online purchases - those over $1,000 - Mastercard will be cutting the amount a merchant pays.Īs part of that move, Mastercard is bundling more of its services into the digital-enablement fee, such as charges for mitigating fraud, preventing identity theft or verifying addresses. That means that, for a $50 online purchase, the fee will triple from half a cent to two cents. The company’s so-called digital-enablement fee, which it charges on all online transactions, will increase to 0.2% of a purchase price from 0.1%, and Mastercard will charge a minimum of two cents per transaction. The Purchase, New York-based firm is also planning to lower the rates it charges hotels, rental-car companies, daycare facilities and casual-dining restaurants. Mastercard, for instance, will lower the fees it charges for any transaction under $5 by about 300 basis points, according to separate people with knowledge of the matter. The move is just one of many that Visa and rival Mastercard Inc. That’s up from $3.61 a month ago and just $2.88 a year ago. Gas prices have soared in recent months, with the national average for a gallon of regular unleaded fuel reaching $4.21 this week, according to the American Automobile Association. “This change will ensure the best-available interchange rates are received for larger fuel transactions, which should lead to fewer pumps shutting off while cardholders are refueling.”Ī spokesman for Visa confirmed the authenticity of the document. “In response to increased fuel prices, Visa is making an adjustment,” according to the document. Taken together, the moves should mean gas stations can raise limits and fewer consumers will face pump shutoffs. Visa will also raise the fraud-liability threshold to $175, according to a person familiar with the matter. Starting next month, the San Francisco-based company will quadruple the maximum transaction amount that carries better interchange rates for purchases made with small-business and commercial cards, according to a document seen by Bloomberg. In recent months, that’s forced some customers - those who drive large SUVs in states with high fuel prices, for example - to pay using two transactions to top off their tanks. Many gas stations have a $125 limit for Visa transactions at the pump because larger transactions trigger higher fees for certain cards, as well as additional liability in the event of fraud.
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made it hard for some drivers to fill up using credit cards. is planning a raft of changes to rules for gas stations to allow larger transactions after a surge in fuel prices across the U.S.
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