Retailers have slammed new membership charges for processing credit card payments.
MasterCard has increased some charges by as much as 161%, according to the British Shops and Stores Association (bssa).
The group said new charges introduced by the card company amounted to ignoring the plight of small retailers less able to survive a faltering economy.
At present retailers accepting MasterCard payments from their customers are charged an interchange fee which is paid to the bank issuing the payment card, a membership fee to MasterCard enabling them to accept payments and a new premium development fee.
The bssa claims the new fees will add an extra £15m a year in costs on all MasterCard transactions which will be passed on to retailers.
“These increases fly in the face of the recent European Commission decision which ruled that MasterCard’s cross border interchange fees are unlawful,” said John Dean, chief executive of the bssa.
“Against this backdrop, there can be no plausible explanation for any increases at this time. This is a step too far in the current climate and MasterCard must recognise the seriousness of this issue.”
Dean said that for retailers already struggling to meet rising costs, the new fees could be the ‘final straw that forces them to close’.
