Insiders: VISA and MasterCard plan to increase credit card transaction fees

ChainCatcher news, citing sources from The Wall Street Journal, reports that VISA and MasterCard are preparing to increase credit card transaction fees, with the fee hike planned to start in October and April next year. Much of this increase comes from online shopping.

Consulting firm CMSPI, which works with merchants, states that these changes could lead to an additional $502 million in costs for merchants annually. CMSPI estimates that the increase in online fees will account for just over half of the revenue. The remainder will come from the increase in transaction fees (also known as swipe fees). Merchants are required to pay these fees when shoppers pay with credit cards.