China Urges Visa and Mastercard to Reduce Transaction Fees

China is pressing Visa and Mastercard to lower bank card transaction fees within the country, aiming to make payments easier for foreign visitors. This push is part of broader negotiations led by the Payment & Clearing Association of China (PCAC) with global card issuers.

Negotiations for Fee Reduction:

According to a Bloomberg News report, the PCAC is discussing reducing fees on foreign card transactions with Visa and Mastercard. The association has proposed lowering the transaction fee to 1.5%, down from the current 2-3% range.

Responses from Mastercard and Visa:

Mastercard has acknowledged receiving the proposal and intends to collaborate with partners to reduce costs for local merchants who accept foreign bank cards. However, neither Visa nor Mastercard has yet provided comments to Reuters regarding this request.

Earlier this week, the PCAC formally proposed that global card issuers cut transaction fees. This proposal was announced in a statement on the association’s website on Tuesday, although details about the fee reduction were not disclosed.