Brussels, 07/05/2004 (Agence Europe) - The European Commission has welcomed the announcements by VISA and MasterCard to publish the their multilateral interchange fee rates for European cross border payments ("MIF") on their websites. This is a further step towards increased transparency of the MIF vis-à-vis retailers in their negotiations with merchant banks regarding fees ("discount rates") for transactions paid with VISA and MasterCard branded payment cards. These fees are not directly paid by the card holder but by the shops, restaurants and other businesses that accept the Visa and MasterCard cards in payment of the goods or services they sell. This development is intended to enhance retailers' ability to negotiate the fees with the banks that are part of the Visa and MasterCard card systems. After discussions with the Commission, VISA and MasterCard recently and separately informed the Commission that they will publish their multilateral interchange fee rates for European cross border payments ("MIF") on their websites. This is a further step towards increased transparency of the MIF vis-à-vis retailers in their negotiations with merchant banks regarding fees ("discount rates") for transactions paid with VISA and MasterCard branded payment cards. Interchange fees are paid by the bank of the merchant to the bank of the cardholder and they are in general the most important cost element of discount rates. Both VISA and MasterCard Europe establish the level of these MIFs in meetings of their respective regional boards. Merchant banks pass the MIF on to merchants who normally pass them on to consumers as part of their overall cost structure. The Commission has been investigating the MIFs of VISA and MasterCard under EU competition law for several years. Following the announcement by VISA and MasterCard, the Commission will continue to closely monitor the situation since payment cards are likely to see a huge increase in use. Amelia Torres, spokesperson for Commissioner Monti, said this was significant progress and hoped this transparency would cut commission costs and therefore the cost of services. She said she wanted commission fees to reflect real costs. They currently stand at between 2 and 5%, which is too high, she said.