Visa posts fees on the Web

Visa USA on Oct. 17 posted its U.S. interchange fee schedule on theWeb.

Although Visa beat MasterCard Worldwide to the punch, MasterCard, which in September announced plans to make its interchange fees available online, was the first to take the step toward fee-transparency.

On Sept. 5, MasterCard announced it would make its interchange schedule available by Nov. 1 atwww.mastercardmerchant.comNov. 1.

The actions of both companies follow a myriad of antitrust lawsuits by U.S. retailers that accuse the card companies of price-fixing. (Read also,Self-service a bigger part of mix at c-store show,Merchants seek congressional action on interchange fees,Fed won't set interchange fees andInterchange wars: Merchants tug networks for change.)

Visa, which holds about 63 percent of the market share, and MasterCard both deny those claims, arguing that fees are not set by the card companies but the financial institutions.

According to the Federal Reserve, which also lists interchange rates, the average interchange fee is about 1.56 percent.

"Being more open about how we operate as a company helps to foster and expand our working relationships with new and existing partners," said Rhonda Bentz, a Visa USA vice president. "By posting our wholesale rates, Visa USA is providing more clarity."

MasterCard plans to take its efforts to work with merchants a step further by setting a cap on interchange fees for gasoline purchases.

"Merchants have told us that interchange fees on rapidly rising gasoline prices are a significant concern to them," said Joshua Peirez, group executive for MasterCard public policy, in a September news release. "MasterCard understands this concern. We believe that putting a cap on interchange fees when consumers use their MasterCard cards for gasoline purchases will benefit all gasoline retailers, as well as consumers who recognize that their purchases are faster and more convenient when they use their MasterCard cards at the pump."

Peirez said the cap will apply to gasoline purchases of $50 and more.

Visa and MasterCard have long been accused by merchants and independent sales organizations for favoring banks, especially where interchange is concerned, since both companies until recently were owned by banks. So beyond making interchange rates transparent, going public also is expected to help Visa elevate its image among merchants.

Since MasterCard'sinitial public offeringin May, the company's stock has soared. In afternoon trading Oct. 18, shares traded for $70.40. When the company went public in May, shares were trading at $39.

Having a more diverse pool of owners is credited with the share leap.