MEPs back caps on card fees across the EU
20 February 2014 | 5896 views | 5
The fees that banks charge retailers for processing shoppers' payments should be capped, Economic and Monetary Affairs Committee MEPs decided in a vote on Thursday.
Banks' card payment fees cost EU retailers over €10 billion each year, according to the European Commission figures.
In a statement, the Committee says: "These fees are not transparent and they differ between EU member states, where they are subject not to legislation but to decisions by national competition authorities."
In today's vote, MEPs backed the European Commission's proposal to cap the bank's fee at 0.3% of the transaction value.
For debit card transactions, the committee amended the proposed cap to seven euro cents, or 0.2% of the transaction value, whichever is the lower.
These caps would apply to both cross-border and domestic transactions in the EU and would take effect one year after the rules enter into force.
Under the new rules, retailers would also be free to choose which cards to accept, unless they are subject to the same interchange fee which, moreover, must comply with the cap set by these rules.
The rules will be put to vote by a full house at one of the upcoming parliamentary sessions.