Visa (V, Financial) and Mastercard (MA, Financial) are back in the EU's regulatory crosshairs—this time over “scheme fees” charged to banks processing card payments on their networks. According to people familiar with the matter, European Commission officials have kicked off a new round of market questionnaires, asking whether retailers truly have a choice in accepting these cards, and if the fees offer real value or just more pain. While early-stage, the investigation could evolve into a full-blown antitrust probe, bringing back the threat of steep penalties—up to 10% of yearly revenue if market dominance abuse is found.
This isn't the duo's first rodeo. Mastercard was slapped with a €570.6 million fine back in 2019 for rules that hiked payment costs, and both companies were forced to slash cross-border fees later that year under EU pressure. The scrutiny isn't just regional either—on the other side of the Atlantic, a $30 billion U.S. settlement over swipe fees was recently thrown out by a federal judge, leaving Visa and Mastercard still tangled in litigation that's dragged on for two decades.
Both firms continue to defend their pricing. Visa argues its fees reflect secure, high-performance infrastructure, while Mastercard says it's all about offering convenience and choice. But the backdrop has shifted—ECB chief Christine Lagarde is pushing hard for a digital euro to reduce the bloc's reliance on foreign payment giants. If this probe escalates, investors should brace for ripple effects: tighter regulation, potential fines, and a very real challenge to the duopoly's dominance in Europe.
