EU: Parliament agrees to cap interchange fees

The European Parliament has voted overwhelmingly in favour of a bill to cap the interchange fees charged by card schemes for payments using credit and debit cards.

The European Commission welcomed the outcome, estimating that the rules when implemented could lead to a reduction of about €6 billion annually in hidden fees for consumer cards.

The Regulation, which will come into force in October, will cap interchange fees at 0.2% of the transaction value for consumer debit cards and at 0.3% for consumer credit cards.

Commissioner Margrethe Vestager said: “This legislation will put a cap on interchange fees, make them more transparent and remove a hurdle to rolling out innovative payment technologies. It is good for consumers, good for business and good for innovation and growth in Europe. As cards are the most widely used means of online payment, this Regulation is also an important building block to complete the European Digital Single Market.”

Full Content: European Commission

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