Visa and Mastercard will reduce interbank fees in Ukraine

The planned coordinated action only applies to interbank commissions for consumer cards, that is, for individuals.

The Antimonopoly Committee has authorized Mastercard Europe and Visa International Service Association to take concerted actions to reduce interbank fees (interchange). This is reported by the press service of the AMCU on Thursday, November 11.  

It is indicated that concerted action to reduce interchange fees is carried out within the framework of a memorandum between Mastercard, Visa and the National Bank of Ukraine to promote a competitive payment market.

According to the supplementary agreement № 1 to the memorandum, the decrease by 1.2% of the marginal size of domestic interbank rates in Ukraine for consumer payment requisites will take place from the next working day after 14 calendar days from the date of the AMCU approval, that is from November 26.

The next phases of reduction will occur, starting from July 1, 2022 - by 1% more and starting from July 1, 2023 - by another 0.9%.

The planned coordinated actions apply only to interbank commissions for consumer cards, that is, for individuals.

The AMCU noted that for the decision polled all parties involved: banks, merchants. Most of the banks noted the sufficiency of competition in the market of card payment system services, and businesses have not provided any objections.

"Taking into account the above-mentioned factors the committee found that the stated concerted actions will not lead to prevention, elimination or restriction of competition on the commodity markets of Ukraine" - summarized in AMCU.

Recall that in May this year the National Bank signed a memorandum with Visa and Mastercard, and announced new rates. Before they wanted to regulate the size of the commissions by law.

Interchange is the commission, which the bank, servicing the point of sale (acquirer bank), transfers to the issuing bank, the card of which was used to pay in the store.

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