What: China is pressurizing Western card companies to lower their fees.

Why it is important: International players should expect regional and national pressure to increase their weight on their businesses.

China is actively encouraging Visa and Mastercard to reduce their bank card transaction fees to better accommodate foreign visitors. The Payment & Clearing Association of China has initiated discussions with these global card issuers to decrease the fees for transactions made with foreign cards. They are proposing to lower the current rate from 2-3% to 1.5%, according to a report by Bloomberg News. Mastercard has acknowledged receiving the proposal and expressed its commitment to collaborating with partners to reduce the expenses local merchants face when accepting foreign bank cards.

However, Visa and Mastercard have not yet responded to inquiries about the negotiations. This push aligns with an earlier proposal by the industry group, which was announced on their website but lacked specific details on the fee reduction.

China asks Visa, Mastercard to cut transaction fees