EU's McCreevy pushes for new payment card schemes

BRUSSELS, Jan 28 (Reuters) - The European Commission said on Monday its ruling on MasterCard (MA.N) paved the way for rival card schemes as it showed fees were not illegal as long as their level was acceptable and consumers have a choice.

The European Union executive said in December it has given MasterCard six months to cut its so-called interchange fee which retailers pay to banks that issue MasterCard branded cards.

Banks have said they are not willing to launch rival card schemes until it is clear what MasterCard will put in place of its current system.

Visa, which dominates cross-border card schemes along with MasterCard, also needs to negotiate a fee structure acceptable to Brussels.

"It is important to underline, as my colleague (Competition Commissioner) Neelie Kroes has done, that the MasterCard decision does not forbid multilateral interchange fees as they are often referred to," EU Internal Market Commissioner Charlie McCreevy said.

"It is a question of level and having choice," McCreevy said at the launch of the EU's single euro payments area.

"In any event, the MasterCard decision provides a green light for anyone wanting to put a business case together to enter the SEPA payment world," McCreevy said. (Reporting by Huw Jones, Editing by Paul Bolding)