China is pushing Visa (NYSE:) and Mastercard (NYSE:) to lower transaction fees on their bank cards to encourage spending by foreign visitors, Bloomberg News reported Friday, citing a source familiar with the matter. case.
The Payment & Clearing Association of China proposes to reduce fees for foreign card transactions from the current range of 2% to 3% to 1.5%, the report said.
If implemented, this proposal could reduce costs for foreigners visiting China. Although merchants typically bear the fees charged by Visa and Mastercard, these costs are often passed on to customers through higher prices.
Regulators around the world have tried to curb the fees that Visa and Mastercard charge merchants for processing transactions.
Earlier this year, the two companies reached one of the largest settlements in U.S. history aimed at limiting credit and debit card fees. However, a New York judge has indicated she would likely reject the agreement, which would resolve longstanding lawsuits in the US over these fees.
Mastercard told Bloomberg it had received the proposal from the Payment & Clearing Association of China and would work with partners to reduce costs for local merchants who accept foreign bank cards.
