The European Commission is reportedly investigating whether Visa and Mastercard fees are having a negative impact on retailers.

An EU document seen by Reuters reveals that the Commission sent out questionnaires to retailers and payment service providers (PSPs) about the payments giants in September.

According to the news agency, the retailers were given until last month to respond.

Questions asked as part of the questionnaires included whether the number of fees in the EEA and the "the continuous introduction of new fees and deletion of existing fees" had negatively impacted their organisation between 2016 and 2023.

The Commission also asked retailers and PSPs if they have been consulted on new fees or changes to fees.

Visa told Reuters that the Commission had sent the organisation a request in August seeking information, adding that it is currently working through "to supply the relevant information".

Mastercard card said that governments and regulators want to "ensure they have line of sight into how industries work", describing the move as a "simple request for information".

In a move welcomed by EU regulators, earlier this year Visa and Mastercard voluntarily agreed to extend caps on interchange fees for non-EU card transactions until November 2029.

This decision extends the commitments originally made in 2019 for an additional five years beyond their planned expiration in November 2024.

Whilst welcoming the voluntary extension, the Commission emphasised that it retains the right to investigate or open proceedings should evidence emerge that the current caps are no longer appropriate. This caveat underscores the regulator's ongoing commitment to ensuring fair practices in the payment card industry.

In September, the US Department of Justice filed a lawsuit against Visa, accusing it monopolising the debit card market and engaging in anticompetitive practices that affect "the price of nearly everything".

Filed in the US District Court for the Southern District of New York, the civil antitrust suit alleges that Visa has unlawfully maintained its dominance in the debit network market by suppressing competition through threats, incentives, and agreements with merchants, banks, and potential rivals.

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