Visa UK denies excessive charging

Friday, October 21, 2005

Visa UK has hit back at claims that the interchange fees it charges are too high.

The Office of Fair Trading (OFT) criticised Visa following investigations that many believe mean that visa-using customers get charged too much for using their card.

Banks set the interchange fee for businesses, which can range from one per cent to four per cent to be added depending on the business' size.

This is then reflected in the prices customers are charged, meaning higher interchange fees translate to higher prices, but Visa has rejected the OFT claims.

"We have been expecting this so we are not surprised by it, although we are disappointed with some of the words used," said Colin Grannell, Visa UK executive vice-president and managing director.

"We do not agree that the rates are unduly high."

In September, a similar case was brought against MasterCard, which found the interchange fees it charged were unfair on MasterCard customers.

The result of the accusations against Visa could be a cut in charges or a fine for the company, depending on Visa's official response.