Search
 

MasterCard Starts To Tap Debit Flows

PURCHASE, N.Y. - Beginning on January 1, MasterCard has begun to assess a three basis point fee on all their debit transactions, using MasterCard branded cards, whether validated with a personal identification number or with the cardholder's signature. The .03% Debit Investment Fee is meant to help MasterCard market its...

By David Morrison | Updated on January 20, 2004

PURCHASE, N.Y. – Beginning on January 1, MasterCard has begun to assess a three basis point fee on all their debit transactions, using MasterCard branded cards, whether validated with a personal identification number or with the cardholder’s signature. The .03% Debit Investment Fee is meant to help MasterCard market its debit products and build broader support in the marketplace, according to a MasterCard spokeswoman. The spokeswoman also denied that the association would be using the money to rebuild its capital stocks after the recent payments in the Wal-Mart retailer suit or to make any of those payments. In its part of the landmark settlement, MasterCard agreed to pay $125 million in the first year and then $100 million per year in the next nine years into a special fund set up for Wal-Mart and the other suing retailers. Although no one from MasterCard has yet become available to provide any hard data about its debit volumes for 2003, Tony Hayes of the Boston-based firm Dove Consulting estimated 2002′s debit volume to be $65 billion on 1.7 billion transactions. A .03% fee on that transaction volume would have yielded roughly $20 million.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.