Spain will reduce credit card commissions

Friday 29 July 2022 15:36 CET | News

The Spanish Ministry of Economy has announced plans to limit commissions of credit and debit cards from the current 2 percent to 0.3% and 0.2%, respectively.

The proposal, which has the approval of the European Parliament, is being discussed in Brussels. Spain aims to be the first European country to lower the cost of operating with these means of payment. Currently, the Regulation on Interchange Rates is being discussed in a three-way negotiation between the European Council, the Parliament, and the Commission. The aim is that the regulation is processed for its subsequent approval during the Italian presidency, which begins on July 2023. If this goes ahead, the regulation could come into force in 2023.

The commissions paid in Spain for the use of credit and debit cards are three times the European average. The European Commission calculated the extra cost of commissions for using a credit or debit card at EUR 10,000 million per year. They believe that cutting its cost will encourage its usage at the expense of paying in cash. According to the People's Party of Spain, this will help retailers and customers while also contributing to fair competition and the entry of new players into the market.

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Keywords: expansion, payment processing, European Commission, credit card, debit card
Categories: Payments & Commerce
Countries: Spain
This article is part of category

Payments & Commerce