Cap on card fees backed by MEPs

21 February 2014

Members of the European Parliament have voiced their support for a cap on the fees that banks charge retailers for processing card payments within the EU.

Currently, banks' card payment fees cost EU retailers more than €10 billion a year and are often not transparent, as well as differing between member states, the European Commission claims.

As such, a uniform approach is required, which has led MEPs to back proposals to cap the bank's fee at 0.3% of the transaction value, or 0.2% for debit card transactions.

Under the new rules, which would apply to both cross-border and domestic transactions, retailers would also be free to choose which cards to accept.

The only exclusion would be if they are subject to the same interchange fee, which would need to comply with the cap set by the new rules.

After receiving MEP backing, the new rules will now be put to vote by a full house at a session of the European Parliament.

 

By Tony Aynsley

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