China Urges Visa, Mastercard to Lower Transaction Fees from 2-3% to 1.5%

Jun 21, 2024, 08:19 AM

China is urging Visa Inc. and Mastercard Inc. to lower their bank card transaction fees in the country. According to sources, Bloomberg News reported on June 21 that the Payment & Clearing Association of China (PCAC) issued a proposal on June 18 to reduce the fees from the current 2-3% to 1.5%. This move aims to facilitate payments for foreign visitors and enhance their payment experience. The PCAC is negotiating with the global card issuers to implement the fee reduction. The bulk of transaction fees typically go to other parties such as bank issuers and merchant acquirers.