Competition Probe Opened Into Mastercard's ATM Scheme

Global payments giant Mastercard originates under investigation by Switzerland's competition authority as part of a probe into whether the company broke national rules governing transactions using other banks' cash machines.

Switzerland's National Cash Scheme is a brand new set of rules that enables charge cards to be used at any ATM operated by Swiss banks rather than being restricted to those run by their issuing bank.

The initiative was created by SIX, a business which operates various facets of Switzerland's financial infrastructure, such as the national stock market. SIX complained last year that Mastercard was refusing to link its cards towards the new system, potentially obstructing the rollout of NCS.

The Swiss Competition Commission is now investigating these allegations.

The spokesperson added: “COMCO is now investigating whether Mastercard has abused its position as a dominant company. Precautionary measures were taken throughout your research.”

COMCO did not give any guidance regarding the timing of the investigation, which might last a long time.

A spokesperson for Mastercard asserted the firm understands COMCO's investigation, but noted that it's “an interim procedural step and doesn't imply any breach of Swiss Competition law by Mastercard or other player.”