New York, March 5 (US): Visa said it will reduce its credit card fees for online and in-store transactions by 10% for small businesses starting in April.
The move comes as the pandemic continues to accelerate the shift to digital payments. Visa, one of the world’s largest payment companies, has benefited as more places begin to accept cards and more people shop online during the pandemic, the AP reports.
But the digital payments sector is getting crowded. Visa faces new forms of competition, particularly from tech companies that have launched alternative methods of payment roaming the traditional Visa and Mastercard networks.
Visa currently charges 1.5% to 2.4% of consumers’ credit card exchange rates, which is a fee that the merchant must pay with each credit and debit card transaction. It is reduced 10% in April.
Visa said the cut affects 90% of businesses but did not specify what constitutes a small business. However, according to a Reuters report citing a source familiar with the matter, the changes will apply to merchants with $250,000 or less in consumer credit for Visa.