Mastercard Network (Scheme) Fees Are Growing Faster Than Payments Volume. Here’s What That Means for Issuers and Acquirers

Nov 20

Yesterday I posted on Visa. Issuers and acquirers are paying more to the networks - and Mastercard shows it again.

As reported 2 weeks ago, in Q3 2025, Mastercard’s payment-volume growth was +9% YoY, while network fees captured in Payment Network net revenue rose +12%.

The pattern holds: network-fee revenue is growing faster than the payments they support.

What it means:
Your cost per dollar processed is creeping up. The network take per auth, per transaction, per dollar is rising - and that compound creep becomes structural margin pressure.

The impact:
- Issuer and acquirer profitability faces steady headwinds.
- Smaller players without scale or negotiating power feel it more.
- Cost models anchored in yesterday’s fee structure are outdated.

This isn’t about a single-rate change - it’s a structural shift. Network-layer costs are growing faster than the volume they’re tied to.

If you manage a payments P&L, this trend should show up in your numbers already.

Are you seeing it?

Steven Leitman

Steven Leitman is Managing Partner of Consulting Resource Group (CRG), a payments consulting and platform firm that helps issuers, acquirers, and BIN sponsors improve profitability through network (scheme) fee optimization, interchange economics, and disciplined cost governance. CRG's Payment Economics practice (CardTraq) includes a suite of platforms designed to manage Visa and Mastercard network fees, interchange performance, and ongoing network rule changes. CRG works with some of the largest global issuers and acquirers.

His work focuses on the economics beneath card programs: Visa and Mastercard network (scheme) fees, pricing structures, interchange qualification, and the hidden cost drivers that materially impact P&L. A core theme is making network compliance measurable and continuous, with data structures, governance models, and platforms that provide ongoing visibility into compliance-driven cost, risk, and fee leakage rather than relying on one-off interpretation exercises.

Steven brings hands-on experience from senior roles at Visa, American Express, and Deloitte Strategy. He publishes regularly on LinkedIn on Visa and Mastercard fee changes, interchange reform, and network compliance.

https://www.linkedin.com/in/steven-leitman/

Mastercard Network (Scheme) Fees Are Growing Faster Than Payments Volume. Here’s What That Means for Issuers and Acquirers

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