EU Commission to propose cap on card payment fees - draft
BRUSSELS, July 17
BRUSSELS, July 17 (Reuters) - The European Commission will propose capping the interbank fees charged on card payments, imposing a limit of 0.2 percent on debit card transactions and 0.3 percent on credit cards, according to draft legislation seen by Reuters.
The proposal stops short of an outright ban on the fees banks charge for processing transactions but it will nonetheless ensure that this cost, which ultimately falls on the card-holder and consumer, is permanently curtailed.
The cap, which is in line with measures demanded by the Commission's antitrust officials to squeeze this money-spinner for banks, will be introduced initially on cross-border transactions, where, an Irish card-holder, for example, pays a bill in France.
After two years, the limits will be extended to so-called interchange fees on domestic payments using all cards.
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