Visa is planning to “significantly” reduce the fees it charges for cross-border card payments in the European Union, according to a Bloomberg report.
Visa Europe is proposing to reduce its interbank fees to 60 percent of their current charge for a level of 0.3 percent of the value of a transaction for cross-border and domestic transactions alike. Visa Europe is the largest payment card network in the EU and was sent a formal complaint over its fee structure by the European Commission last year.
“It is excellent news that Visa decided to submit these commitment proposals in response to our objections,” EU Competition Commissioner Joaquin Almunia told Bloomberg in an e-mailed statement. “Given the importance of card payments for European consumers and businesses” in the EU, “putting an end to restrictions of competition in interbank arrangements is a key priority for the commission.”
“Today’s outcome is the result of constructive dialogue between Visa Europe and the European Commission and is in line with the level of 0.3 percent established in the industry,” Peter Ayliffe, Visa Europe’s chief executive officer, told Bloomberg.