China asks Visa, Mastercard to cut transaction fees, Bloomberg News reports

(Reuters) – China is pushing for Visa (NYSE:) and Mastercard (NYSE:) to lower their bank card transaction fees in the country, as part of an effort to facilitate payments for foreign visitors, Bloomberg News reported, citing a person familiar with the matter.

The Payment & Clearing Association of China is negotiating with global card issuers including Visa and Mastercard on lowering fees charged on foreign card transactions, according to the report published on Friday.

The association proposed trimming the fee to 1.5% from 2-3%, the report added.

Mastercard told Bloomberg that it had received the proposal from the industry association and said it would work with partners to lower costs for local merchants accepting foreign bank cards.

Visa and Mastercard did not immediately reply to Reuters’ requests for comment.

The industry group issued a proposal earlier this week to global card issuers on the fee cut, according to a statement posted on its website on Tuesday, without disclosing details of the price cut.