China is pushing for Visa Inc. and Mastercard Inc. to lower their bank card transaction fees in the country, according to a source familiar with the matter. This move is part of an effort to facilitate payments for foreign visitors.

China Proposes Fee Cut

The Payment & Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term Association of China is in talks with global card issuers, including Visa and Mastercard, about reducing fees that local merchants pay for foreign card transactions. The association has suggested reducing the fee to 1.5% from the current 2-3%, the source said.

The source requested anonymity due to the private nature of the discussions. These negotiations are still ongoing, and the specifics of the fee reduction may change.

Mastercard has acknowledged receipt of the proposal from the industry association and affirmed its commitment to collaborating with payment industry partners to lower costs for local merchants accepting foreign bank cards. However, neither the industry association nor Visa has responded to requests for comment.

China has asked Visa $V and Mastercard $MA to lower bank card transaction fees from 2-3% to 1.5%, aiming to facilitate payments for foreign visitors.

The Payment & Clearing Association of China is negotiating with the global card issuers to implement the fee reduction.… pic.twitter.com/0tqnWfsTHn

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Meanwhile, in the UK, Visa and Mastercard are facing legal action from merchants over alleged overcharging on interchange fees, as reported by Finance Magnates. The Competition Appeal Tribunal's decision permits collective lawsuits against the companies, enabling merchants to seek damages together.

These lawsuits challenge fees imposed when consumers use Visa and Mastercard, marking another legal hurdle for the payment giants amidst ongoing disputes over interchange fees in the UK.

Urging More Acceptance of Foreign Cards

Earlier, the industry group issued a proposal to global card issuers aimed at reducing fees, as indicated in a statement published on its website on Tuesday. The statement did not specify the exact reduction in fees.

Issuers were encouraged to coordinate with their network members to introduce favorable fee structures, with the goal of encouraging local merchants to accept foreign bank cards.

China's retail sector is becoming increasingly digitized and cashless, but many merchants are hesitant to accept foreign bank cards due to high processing fees. China aims to lower these fees to make payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term more convenient for foreign visitors. In March, the State Council encouraged local authorities to push more merchants to accept foreign cards.