Russia may crack down on Visa & Mastercard over dominant market position

Russia’s commerce associations have filed a request to the nation’s antitrust authority on bringing motion in opposition to worldwide fee methods Visa and Mastercard over alleged abuse of market energy in Russia.

The attraction was introduced by a group of commerce societies, together with the Association of Internet Trade Companies, the Retail Companies Association (ACORT), and the Association of Trading Companies and Manufacturers of Electrical Household and Computer Equipment, in accordance with the Federal Antimonopoly Service, as cited by TASS.

The grievance is reportedly targeted on interchange charges set by the fee methods.

An interchange charge is a sum paid by the lender servicing a commerce outlet to the lender that issued the cardboard, which is utilized by clientele of a store. The extent of fee is often outlined by transaction quantity, and relies upon on the kind of commerce outlet and rank of the cardboard. Card issuers normally outweigh the prices of issuing and servicing its playing cards, buyer loyalty packages, and new providers on the expense of that fee.

According to the candidates, interchanging contains the most important part of the charges that the majority retailers pay for the privilege of accepting credit score playing cards, representing as much as 70 % of those charges. The applicant occasion additionally mentioned that the fee methods set numerous tariffs for interchanging in numerous stores, which is seen as commerce discrimination. The quantity of the fee can also be too excessive and unreasonable within the context of a developed retail market.

Earlier this month, Russian President Vladimir Putin ordered the federal government and the Central Bank of Russia to undertake measures to lower commissions charged by banks for noncash transfers.