Mastercard fined 570 million euros for raising card fees

Global credit card company Mastercard has been fined 570.6 million euros by the European Commission for raising costs of card payment fees.

The European Commission also fined the company for preventing retailers from using cheaper banking services while abroad.

According to the EU’s antitrust regulator, Mastercard has been preventing retailers from shopping around for lower bank fees that might be available outside of their country.

Commissioner Margrethe Vestager said: ‘European consumers use payment cards every day when they buy food or clothes or make purchases online.

By preventing merchants from shopping around for better conditions offered by banks in other member states, Mastercard's rules artificially raised the costs of card payments, harming consumers and retailers in the EU.’

Mastercard has said that the fine would be taken as a charge in the fourth quarter of 2018, saying the closure of the case was a milestone for the company

‘This decision relates to historic practices only, covers a limited period of time of less than 2 years and will not require any modification of Mastercard’s current business practices,’ Mastercard said in a statement.

The European Commission granted Mastercard a 10% fine reduction for cooperating with the investigation, and are also investigating Mastercard’s fees charged on card payments made by tourists visiting European regions.

Mastercard's fine comes as part of the EC's action plan to reduce card fees for merchants in the EU. Over the past decade, the commission has been acting as the antitrust regulator for the EU.

The EC has previously taken decisions against Visa Europe, to make legally binding commitments that cap the levels of interchange fees for all debit and credit card transactions within the European Economic Area.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.