20 Minutes: The Consequences of New MasterCard Fees on Maestro Transactions
Impact of the 20 Minutes Fee Changes
In August 2023, MasterCard modified its fee structure for transactions made using Maestro cards. This transition from fixed fees to percentage-based commissions has heighted debate among key players like Visa and the Competition Commission (Comco). Previously, Maestro fees were a fixed few cents per transaction, but now, rates will vary based on transaction size.
Background of the Changes
The Swiss Competition Commission commenced an investigation in June 2023 aimed at reducing interchange fees imposed by both Visa and MasterCard. While Visa has not yet reached an agreement, MasterCard has responded by lowering its fee to 0.12% from 0.2%.
Future of Maestro Payments
Despite these changes, i>the actual effect on consumers and merchants is expected to be limited. Most banks have phased out issuing new Maestro cards, opting instead for MasterCard Debit and Visa Debit. Consequently, Maestro transactions have seen a significant drop in usage, comprising only a small fraction of overall card payments.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.