Visa to cut charges in Poland to 0.5 pct

WARSAW, March 31 Mon Mar 31, 2014 11:46am EDT

WARSAW, March 31 (Reuters) - Visa Europe will cut the rate it charges for card transactions in Poland, also known as the interchange rate, to 0.5 percent from 1.2 to 1.3 percent, the payments company said on Monday.

The reduction will come into force from July 1, Visa added.

The cut in the rate was forced by a law that came into effect this year and will increase pressure on the financial results of banks that receive part of the proceeds, analysts said.

Polish banks have been struggling to increase profits because of record-low interest rates. (Reporting by Marcin Goclowski; Editing by David Goodman)