What would be the ideal solution for retailers and consumers?
Retailers want to know exactly what is included in the interchange fee and to pay their fair share of the cost. Transparency of these costs would allow retailers to make a decision – based on the risk profile of their business – on whether to accept transactions using MasterCard. Each cost needs to be separately justified and the burden of proof should be on the banks to show that these merit exemption and inclusion in the interchange fee. Price rises would not be necessary if the fee was justified and realistic and in turn, the consumer would be paying less.
