MasterCard heads to court over EU ban on card fees

MasterCard will make a final attempt to overturn an EU ban on cross-border card fees in a hearing at Europe's highest court next month, in a case with repercussions for the financial industry and global card payment systems.

The case involves so-called multilateral interchange fees (MIFs) set by MasterCard, Visa and other credit and debit card firms and which are paid by retailers to banks that issue the cards.

In 2007, the European Commission determined that such fees for cards issued in Europe were a violation of EU competition rules on fair competition and that they ultimately jacked up costs for consumers and merchants. Europe's lower court upheld the regulatory decision in May 2012.

On the 13 June 2013, EU regulators asked Visa Europe's customers and rivals to assess its offer to cap inter-bank credit card fees at the same level as competitor MasterCard, a concession intended to end an antitrust investigation and avoid a possible fine.

• Primary Source

ESO: Background information: EU wins landmark ruling over credit, payment card fees http://www.europeansources.info/record/eu-wins-landmark-ruling-over-credit-payment-card-fees/

EurActiv, 13.06.13: EU consults rivals, customers on Visa Europe probe http://www.euractiv.com/euro-finance/eu-consults-rivals-customers-vis-news-528547

ESO: Background information: Antitrust: Commission market tests Visa Europe's commitments – frequently asked questions http://www.europeansources.info/record/antitrust-commission-market-tests-visa-europes-commitments-frequently-asked-questions/

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