Mastercard cuts MIFs
There is good news for UK credit card holders travelling to European Union countries following a decision by Mastercard to cut transaction fees.
The provider announced it will lower multilateral interchange fees (MIF) for cross-border payments after being threatened with heavy daily fines by the European Commission.
The organisation complained the fees discourage retailers from accepting credit cards from other EU nations.
As a result, Mastercard will temporarily cap charges at 0.3% from July for payments made this way. Previously they fluctuated between 0.8% and 1.9%.
Neelie Kroes, EU competition commissioner, told the Guardian: "This will mean lower charges for retailers accepting payment cards, which should in turn be passed on to consumers, both those paying with cards and those paying cash."
In related news, Mastercard recently announced a commitment to corporate social responsibility by backing a campaign by the Eden Project to restore community values.
The credit card provider will sponsor The Big Lunch on July 19th, asking people across the UK to sit down for a meal with neighbours or organise a street party.
Written by ©
