Europay International has cut its fees to member banks in response to growing demand and scale economies.
Since its formation in 1992, the European affiliate of MasterCard has cut bank fees a cumulative 20.9%. For 1997, fees have been reduced 10% for Eurocard-MasterCards cards, 25% for authorizations, and 5% each for clearing, settlement, and member assessments.
"Tariff reductions are our dividend payments, which increase for every bank in line with the business growth they generate for themselves," said Francis van den Bosch, Europay's director of commercial affairs. "Despite the significant investments we are continuing to make in chip technology and market development, we firmly believe competitive fees provide banks with the ability to enjoy long-term benefits when they develop their card businesses in cooperation with Europay."