Visa transfer plans mooted

Date: 08/11/01

By Laurence Frost

EUROPEAN credit card holders could soon receive as well as spend money through their plastic, under plans to be unveiled by Visa's EU arm.

The card issuer says it is talking to the European Commission about proposals to launch a new credit transfer facility as early as April next year. "There's more and more pressure from the Commission to lower prices for international transactions," said Hans van der Velde, president of Visa's EU region. He said the move was also a response to the boom in cross-border transactions between individuals arranged through internet auction sites.

As the launch of the euro notes and coins approaches, the EU executive has stepped up the pressure, with internal market chief Frits Bolkestein tabling a proposal to force banks to lower their charges on cross-border transactions.

Van der Velde said he did not expect any opposition to the plans from banks or regulators. Visa International has granted the Visa European Region independent company status, devolving control to the new entity, Visa EU.

Report of proposals by Visa to launch a new credit transfer facility in 2002.