ECONOMY FINANCE&BANKING

Visa Europe encourages credit card payments :The costs of processing credit card payments will drop significantly

The costs of processing credit card payments will drop significantly in the upcoming period, Catalin Cretu, Visa Europe Regional Director for Romania, Croatia, Malta and Slovenia, stated at a press conference on Thursday.

“With the the interchange rate drop on December 9, we believe the costs of processing credit card payments will drop significantly and, consequently, a series of industries and traders that have until now refused to accept credit card payments, and where large payments are made, such as utilities, will start to enter this area, noticing the very important advantage of accepting electronic payments versus collecting cash at all sorts of counters, transporting and counting the cash. All premises point to these costs of accepting credit card payments dropping significantly,” Cretu said.

He pointed out that more than one in every two transactions carried out with Visa cards represents payments. “Although more than one in every two Visa card transactions consists of payments, if we look at the value of the payments, this value, even at market level, is still limited at around 20 per cent. Only 20 per cent of the money on the card is used for payments, despite the fact that more than one in every two transactions consists of payments,” Cretu pointed out.

The overall expenditures made with Visa cards issued in Romania grew by 13 per cent in fiscal year 2015, to approximately EUR 24 bln.

According to a company communiqué, the number of POS payments made with Visa cards grew by 22 per cent against the backdrop in which all types of cards registered growth of over 20 per cent for this indicator. Overall, the number of electronic payments made with Visa cards grew seven times faster than the number of cash withdrawals.

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