Retail Giants Challenge Visa and Mastercard Fees Amid EU Antitrust Scrutiny

A coalition of Europe's largest retailers and digital commerce companies is urging the European Commission to impose tighter controls on what they describe as excessive and opaque fees levied by Visa Inc. $V.BA and Mastercard Inc. $MA. These U.S.-based financial heavyweights, which collectively process around two-thirds of all card transactions in the eurozone, are once again in the spotlight amid growing concerns over competition and pricing transparency in the payments ecosystem.

In a formal appeal to EU regulators, the group — which includes both brick-and-mortar and online businesses — argues that high interchange and scheme fees significantly hinder market competitiveness and deter smaller or alternative payment providers from gaining traction. The move comes as Europe continues its broader efforts to promote financial sovereignty, bolster digital payment innovation, and protect consumer choice in the Single Market.

A Fragmented Payments Landscape Under Strain

Retailers have long voiced frustration over the structural dominance of Visa and Mastercard, claiming that their fee models are both complex and non-negotiable. These fees, which merchants must pay to process card payments, include interchange fees (paid to the cardholder's bank) and scheme fees (retained by the networks). While the EU introduced a cap on interchange fees in 2015, many retailers argue that this measure has not gone far enough — particularly in light of the increase in cross-border e-commerce and contactless payments post-pandemic.

Core Complaints Shaping the Regulatory Push

• Lack of transparency in how Visa and Mastercard set and update fees

• Limited bargaining power for retailers, especially small and medium-sized enterprises (SMEs)

• Barriers to innovation due to network exclusivity and technical lock-in

• Rising costs associated with both in-store and online card transactions

• Market distortion resulting from vertical integration and dominance of two U.S.-based players

Economic and Political Undercurrents Gaining Momentum

While the issue has primarily been seen as a business concern, it is increasingly gaining traction at the policy level. Some EU lawmakers and regulators have raised alarms over the dependence on non-European infrastructure for critical financial services — a concern amplified by geopolitical instability and rising calls for digital sovereignty.

The European Payments Initiative (EPI), a consortium-backed effort to build a unified pan-European payments solution, was partly conceived as a response to this imbalance. However, despite political support, the EPI has faced its own delays and strategic hurdles.

Developments Likely to Influence the Policy Debate

1. Renewed regulatory focus The European Commission is reportedly evaluating whether current interchange caps are sufficient and whether new measures targeting scheme fees or fee disclosures are warranted.

2. Antitrust investigations Ongoing inquiries into pricing practices and potential anti-competitive conduct could serve as the foundation for broader enforcement actions against the networks.

3. Merchant coalitions Coordinated lobbying efforts by Europe’s largest retail groups — including supermarkets, digital marketplaces, and logistics platforms — are pressuring regulators to treat this as a systemic economic issue.

4. Consumer advocacy groups With payment fees ultimately passed on to end users, consumer organizations are increasingly aligning with merchants to demand greater transparency and fairness.

5. Fintech innovation The EU’s ambition to foster a dynamic fintech ecosystem could be undermined if high access costs persist, deterring smaller players from entering or scaling within the market.

Regulatory Crossroads for the European Payment Market

As the European Commission considers the next phase of regulatory evolution for the financial services sector, the outcome of this mounting retailer push may have significant ramifications. Whether through stricter fee regulation, broader transparency requirements, or promotion of domestic alternatives, the bloc appears poised to recalibrate the balance of power in the payments industry.

For Visa and Mastercard, the growing chorus of opposition signals more than reputational risk — it presents a strategic challenge to their long-standing dominance in one of the world's most lucrative and digitized markets.