EU plan to cut credit and debit card fees is confirmed

The European Union published in July 2013 plans to cut transaction fees on debit and credit cards in the EU - but there is disagreement over the potential impact.

The European Commission estimates that the EU payment market is worth 130bn euros (£112bn) but is 'fragmented and expensive'. It wants to cap 'interchange fees' to a maximum of 0.3% of a transaction. The fees involved are paid by shops and businesses to banks, every time a consumer uses his or her card.

Retailers say customers could ultimately benefit from lower prices in the shops as a result of the proposals, which could take years to implement. But banks argue that consumers will instead end up paying higher charges to use debit and credit cards.

ESO: Background information: Commission to go ahead with cap on card fees http://www.europeansources.info/record/commission-to-go-ahead-with-cap-on-card-fees/

EurActiv, 25.07.13: EU eyes €6 billion savings from credit, debit card fee caps http://www.euractiv.com/euro-finance/commission-presents-debit-credit-news-529563

Presseurop, 25.07.13: 'EU wants to cut bank card fees’ http://www.presseurop.eu/en/content/news-brief/4001411-eu-wants-cut-bank-card-fees

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