21st February 2014

Credit card payment procession fees to be regulated

The MEPs in the Economic and Monetary Affairs committee have backed the Commission´s proposal to cap card payment procession fees. Retailers are obliged to pay these until now unregulated fees to Visa and Mastercard for every card payment. The average fee ranges from 0,2 to 1% across the EU and many retailers say the dominant players, Visa and Mastercard, use their dominance in the market to set them very high. EC estimates card payment procession fees amount to €6 billion a year in the EU. The MEPs have now backed the cap of 0,3% for credit card payments and 0,2% or 7 cents, whichever is lower, for debit card payments. These restrictions will apply to all transactions in the EU and will come into force one year after their adoption by the European Parliament in the plenary and by the Council. The aim of the Commission is to save retailers money, which could translate into lower prices for consumers. Visa and Mastercard representatives, however, warn that this single measure for the entire EU ignores local specifics and could lead to higher prices for consumers of credit and debit cards and attached services.

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Members of the American Chamber of Commerce in the Czech Republic