This means that the multilateral interchange fees typically incurred by such transactions will be reduced by around 40 per cent on average.Commissioner Margrethe Vestager, in charge of competition policy in the EU, said the commitment would ‘reduce the costs borne by retailers for accepting payments with cards issued outside the EEA’.
She continued: ‘This, together with our January 2019 decision on Mastercard’s cross-border card payment services, will lead to lower prices for European retailers to do business, ultimately to the benefit of all consumers.’ When a retailer accepts a card from outside the EEA they must pay a merchant service charge, which they then pass on to their customers by raising retail prices.This means the fees are ultimately felt by anyone who wants to make a purchase, whether they use an international card or not.Visa and Mastercard have proposed a 0.2 percent fee on non-EU debit card payments carried out in shops and a 0.3 percent fee on credit card payments, the Commission said late last year.
This would bring their fees in line with those charged for EU cards, which were the subject of a long EU investigation after a 1997 complaint by business lobby EuroCommerce.
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Source: MetroUK - 🏆 13. / 82 Read more »