Visa, MasterCard fee increase “will kill the economics for small-ticket debit purchases”

In a move that could discourage some retailers from accepting debit cards for small transactions, Visa Inc. and MasterCard Inc. are raising the fees merchants pay for small-ticket debit purchases, according to Thomas McCrohan, an analyst with Janney Montgomery Scott. He said the credit card companies plan to increase the fees, which ultimately are paid to banks, not MasterCard or Visa, to 23 cents per transaction, reported MarketWatch. Currently a retailer pays about eight cents for a $2 cup of coffee purchased with a debit card, said McCrohan, who believes that the increase “will kill the economics for small-ticket debit purchases.”