Major worldwide payment system, Mastercard is reported to have been fined by the European Commission for an infringement to the payment regulations.
The £501 million ($649 million) penalty was issued following an investigation that revealed the company’s policy on interchange fees that has caused prices for both consumers and retailers to increase unjustly.
According to the Mirror, Mastercard’s policy required acquiring banks (the banks used by retailers) that offers its brands, Mastercard and Maestro to apply the interchange fees of the country where the retailer was located.
Further investigation concluded that Mastercard's cross-border acquiring rules has prevented retailers from benefitting from lower fees and restricted competition between banks cross border, which is against the EU antitrust rules.
As of writing time, Mastercard hasn’t made any responses regarding to the penalty they have received.
A while ago, the payment system giant was reported to apply for a patent for a blockchain-based business-to-business (B2B) transactions they invented that they claim to be able to expedite the payment process.
Has the time come for Mastercard to embrace partnership with companies like Ripple that has proven their technology through the many financial institutions worldwide that use its service?
Stay with Chepicap for more updates.