21 October 2014

EC accepts Visa Europe credit card fee cap proposal

26 February 2014  |  4898 views  |  0 EU flag

The EC has accepted Visa Europe's promise to cap its multilateral interchange fees (MIFs) for cross-border credit card payments at 0.3%.

The move renders Visa's commitment to slash its fees by up to 60% legally binding. Visa made the concession last May in the wake of anti-trust proceedings initiated by the EC in July 2012.

Visa will also reform its rules so that banks will be able to apply a reduced cross-border inter-bank fee when they compete for clients in other member states.

EC competition commissioner Joaquín Almunia says: "The cap on inter-bank fees for Visa Europe's credit cards and the commitments ensuring cross-border competition are excellent news for European consumers, since the fees paid by retailers end up on their bills."

The agreement on credit card transactions comes after a similar cap - of 0.2% - was hammered out by the EC and Visa for debit cards in 2010. Visa rival MasterCard is appealing a legal judgement requiring it set the same caps.

The Commission says it will continue proceedings against Visa Inc. in relation to international fees - such as fees that apply when a tourist from the US uses his Visa credit card to make a purchase at a merchant in the EEA. These fees are set by Visa Inc. and not by Visa Europe.

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