Banks’ card payment fees cost EU retailers over EUR 10 billion each year, according to European Commission figures. Retailers are charged for every card transaction and add the costs to the prices of goods or services they sell.
Fees: clear and capped
The service or “interchange” fees that banks charge for processing transactions under schemes such as Visa and MasterCard, would be capped at 0.3% of the transaction value for credit card transactions and EUR 7 cents, or 0.2% of the transaction value for debit card ones.
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. In time, lower fees should translate into lower prices for card users.
Online payment safeguards
Online payment security rules would also be updated to keep pace with technical progress, market developments and payments made online. Online payment service users would also get a uniform set of information for example all charges, execution times, contact information and where applicable exchange rates, would have to be clearly stated.
Unauthorized payments would have to be refunded within 24 hours of their being noticed and clients could be obliged to bear losses resulting from the illegal use of a lost or stolen payment card or device up to a maximum of EUR 50.
Lower costs and wider choice of payment services
A payer using an online account would have the right to use payment software or devices provided by an authorized third party of his choice and have his payments executed on his behalf by this provider without extra charges to be added by the payee.
Payment service providers would be required to disclose the actual cost of processing payments on request. Moreover, caps for payment service charges should be laid down in forthcoming EU rules on card payments and should apply regardless of the specific payment device or means of execution.
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