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Merchants in the United Kingdom on Friday said MasterCard Worldwide fee increases on card transactions will cause significant financial burdens for small businesses. Merchant groups contacted by CardLine Global, however, would not say specifically which fees MasterCard increased or by how much, and MasterCard declines to comment on its fees. The card company also has raised its "membership fees," which issuers pay to MasterCard, according to the British Retail Consortium, a trade group. Issuer membership fees have increased by up to 161%, the consortium says, which was unable to provide exact numbers. The consortium also accuses MasterCard of trying impose a new fee related to card transactions, but details about that fee were vague late Friday. The increased fees could add up to £15 million (US$23.8 million or 18.8 million euros) in additional costs for MasterCard transactions in the UK, the group says. The group claims MasterCard is trying to "recoup" lost revenue from its so-called cross-border interchange rates that European regulators last year said violated antitrust rules. MasterCard has suspended assessing interchange on cross-border payments pending a decision on its appeal of that ruling. EuroCommerce, a Brussels-based merchant group, and furniture retailer Ikea have accused MasterCard of failing to pass along savings from the interchange-rate suspension (CardLine Global, 10 Oct.). Cross-border transactions represent only about 3% of total card transactions in Europe. "MasterCard's fee increases and new charge are another slap in the face for hard-pressed customers and retailers, especially smaller business," Stephen Robertson, the consortium's director general, says in a statement.
