June 21 (Reuters) - China is pushing for Visa and

Mastercard ( MA ) to lower their bank card transaction fees in

the country to encourage spending by foreign visitors, Bloomberg

News reported on Friday, citing a person familiar with the

matter.

The Payment & Clearing Association of China is proposing

lowering the fees charged on foreign card transactions to 1.5%

from between 2% and 3%, the report said.

If implemented, the proposal could cut costs for foreign

nationals visiting China. While merchants bear the fees charged

by Visa and Mastercard ( MA ), they often pass these on to their

customers through price hikes.

Regulators around the world have been trying to rein in the

fees Visa and Mastercard ( MA ) charge merchants for processing

transactions. Earlier this year, the duo reached one of the

largest settlements in U.S. history to limit credit and debit

card fees.

But a New York judge has indicated she would reject the

agreement that would have ended longstanding litigation in the

U.S. over the fees.

Mastercard ( MA ) told Bloomberg it had received the proposal from

the Payment & Clearing Association of China and would work with

partners to lower costs for local merchants accepting foreign

bank cards.

Visa and Mastercard ( MA ) did not immediately reply to Reuters

requests for comment.

So far this year, shares of both companies have gained more

than 6% each.

(Reporting by Disha Mishra and Niket Nishant in Bengaluru;

Editing by Savio D'Souza, Rashmi Aich and Devika Syamnath)