Competition Office says Visa Europe report misleading
Hungary's Competition Office (GVH) has said a report in daily Népszabadság on Thursday about Visa Europe's market position in Hungary was misleading. The payment company's situation in Hungary is the result of a commitment made to the European Commission, GVH said. Népszabadság said on Thursday that Visa Europe is considering pulling out of Hungary because lower interchange fees - which translate as lower revenue for cardholders' banks - have drastically reduced business. The paper said Visa lowered its interchange fee - a fee typically paid by the retailer's bank to the cardholder's bank every time a bank or credit card is used - to 0.2% after a decision by Hungary's Competition Office to levy HUF 1.9 billion in fines for cartel activity among payments companies and banks. But competitor MasterCard - which controls more than 80% of the bank card market in Hungary - only lowered its interchange fee to 0.6%. GVH noted that Visa Europe made a commitment to the European Commission to cap the weighted average interchange fee for consumer debit card transactions at 0.2%.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.