Retailers don’t like Mastercard’s payout terms


A new 3% charge on the purchase price of Mastercard when customers use a new installment payment plan has angered some retailers, according to a Bloomberg report, which notes that retailers will be automatically enrolled in the program but may withdraw.

While some retailers opposed the fee, others indicated support because the 3% fee is lower than other companies that allow retailers to offer standalone BNPL option fees, according to the report. , which also notes that most fast-food retailers and gas stations have opted out of being served since their purchases are often below the program’s $50 threshold.

“BNPL’s promise will be fully realized when everyone benefits – lenders, merchants and ultimately the consumer,” said Chiro Aikat, executive vice president of product and engineering at Mastercard, to Bloomberg via email, according to the outlet. “When we set up our program last year, we were deliberately in favor of another seamless and transparent payment method, with the same levels of trust and security expected from Mastercard.

Retailers are increasingly complaining about the fees they are charged to accept electronic payments, Bloomberg reported, noting that fees in 2021 exceeded $130 billion according to a data source.

See also: 71% of affluent BNPL users have increased their consumption in the past 12 months

The universe of buyers using BNPL programs has recently expanded to include more affluent buyers in addition to those with low incomes.

Among the retailers that have pulled out of the new Mastercard offer are operators of gas stations, convenience stores and fast-food restaurants who fear customers will appreciate making payments over time, Bloomberg reported.

“There are all kinds of new dimensions to it that go beyond the frustrations of credit cards,” Doug Kantor, general counsel for convenience store group NACS, reportedly told Bloomberg. “It’s definitely a source of frustration. No one should be automatically subscribed to a service in this context. And, frankly, the service they offer doesn’t make sense to a lot of retailers. »

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